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Yen Slides Past ¥162 to a 40-Year Low as the Fed's Hawkish Turn Tightens the Vise

6/30/2026

The Japanese yen has hit its weakest point in four decades, breaching ¥162 to the dollar as the Federal Reserve's hawkish policy shift heaps fresh pressure on a currency already struggling to find a floor.

The move crystallises one of the sharpest interest-rate divides in modern monetary history — and the consequences for Japan's importers, households, and policymakers are sharpening with every passing session.

What ¥162 Means in Practice When a currency falls this far, the damage shows up in import bills before it shows up in political speeches.

Japan is a major buyer of overseas energy and food, which means a weaker yen functions as a rolling tax on consumers and manufacturers alike.