The Japanese yen fell to 163.24 against the US dollar this week, its weakest level in 40 years. A massive $73 billion intervention by Japanese authorities failed to stop the currency's slide.
A 40-year low
The yen's drop to 163.24 per dollar marks a milestone not seen since the early 1980s. The decline has been steady over recent months, with the currency losing ground against a strengthening dollar. Japanese officials have repeatedly expressed concern about the yen's weakness, which pushes up import costs and strains households.
$73 billion effort
Japanese authorities stepped in with a $73 billion intervention to try to prop up the yen. The move was one of the largest currency interventions in recent years. But it didn't work. The yen continued to fall after the intervention, settling at the 163.24 level. The failure highlights the limits of what central banks can do when market forces are strong.
The yen remains under pressure, and Japanese officials have not announced any further steps. The currency's trajectory will depend on global interest rate differentials and economic data in the coming weeks.
