The yen hits a 40-year low, historic plunge shocks the Japanese market.

The Japanese yen has fallen to its lowest level against the US dollar since 1986, causing concern domestically in Japan. Traders are on high alert for intervention by Japanese authorities in the market. The yen depreciated by 0.1% to 161.96 against the US dollar, breaking below the key level of 161.95 reached during Japan's previous round of exchange rate intervention in July 2024. The last time the yen hit this level, the opposite trend occurred, as it was during a period of significant appreciation of the yen following a currency agreement led by the United States, leading to a several-year period of large-scale yen appreciation.