Yen Weakness Tests Japan’s Resolve and Reserve Firepower

• Japan’s yen hovered near a 40-year low as investors favored the dollar amid a widening interest-rate gap.
• Markets largely ignored Tokyo’s intervention warnings, keeping pressure on the yen near 161.95 per dollar.
• Japan reviewed its $1.3 trillion reserves while SBI and Startale launched the country’s first trust-backed stablecoin.

The Japanese yen hovered near its weakest level in nearly four decades on Wednesday, as investors favor the US dollar over Japan’s currency. The yen traded around 161.95 per dollar, close to levels last seen in 1986, highlighting the growing pressure on the currency.

The yen has remained under strain as the gap between US and Japanese interest rates continues to draw money into dollar-denominated assets. Despite repeated warnings from Japanese officials about excessive currency moves, the market has shown little sign of changing course.

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