Japanese Yen Hits 40-Year Low, Nears 165 Level as Officials' Warnings Fall Flat

According to IG Australia analyst Tony Sycamore, the Japanese yen hit a 40-year low against the US dollar on Thursday (July 24), approaching the closely-watched 165 level. The yen has declined approximately 0.9% this week, marking its worst performance since May after Japan's record-scale foreign exchange intervention.

Earlier this week, senior Japanese officials warned of potential market intervention if necessary, but the market largely ignored the warnings. With interest rate differentials between the US and Japan remaining significant, analysts expect the yen to continue weakening toward the 165 mark despite potential BOJ rate hikes.