Japan spends ¥11.7 trillion to support yen as currency hits 40-year low

What happened

Japan's government intervened in the currency markets between late April and late May, spending ¥11.7 trillion ($73 billion（約12兆円）) to prop up the weakening yen. The yen broke through ¥162 against the dollar on Tuesday, marking its weakest level since 1986, a decline from a high of around ¥75 in 2011.

Why it matters

A weak yen makes Japanese exports more expensive for overseas buyers and erodes the purchasing power of Japanese consumers and businesses dealing in foreign currencies. The prolonged decline has prompted the government to pledge "appropriate action at any time," signaling ongoing concern about the currency's trajectory.

What to watch

The yen weakness mirrors drops in other Asian currencies following the Middle East conflict, suggesting broader regional currency pressures beyond Japan alone.