Japanese Yen Hits 40-Year Low Near 161.12 on June 19, Despite BOJ Rate Hike

USDJPY-0.06%
According to Reuters, on June 19, the Japanese yen hit levels near 40-year lows at USD/JPY 161.12, despite the Bank of Japan raising rates to a 31-year high last week. The persistent weakness reflects hawkish signals from U.S. Federal Reserve Chair Kevin Warsh, which continue to strengthen the dollar, while Japan's core inflation has remained below the BOJ's 2% target for four consecutive months, weakening expectations for further rate hikes. Market participants expect the Ministry of Finance may intervene again when USD/JPY approaches 161.95.
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