24/06/2026 04:14 - Economia
The Japanese currency is experiencing one of its most delicate moments in decades. The Japanese yen depreciated to reach 161.90 yen per dollar during the night of Monday, June 22, 2026, a level not registered in two years and dangerously close to the historic low of nearly 40 years.
The critical threshold stands at 161.96 yen per dollar. Surpassing that mark would mean reaching the lowest level in four decades, a scenario Japanese authorities are determined to prevent.
Japan's Finance Minister, Satsuki Katayama, held conversations on Monday, June 23, 2026 with US Treasury Secretary Scott Bessent to analyze the situation of global financial markets.
According to statements collected by the Jiji Press agency, Katayama affirmed: "Japan and the US have agreed to take firm measures whenever necessary. In that sense, there is no doubt."
This bilateral coordination reflects both nations' concern about foreign exchange market volatility and its impact on the global economy.
After the conversations between both authorities became known, the yen briefly appreciated to settle around 161 yen per dollar on the morning of Tuesday, June 24, 2026.
The market anticipates a possible currency intervention by the Japanese government to curb the weakness of its currency, a tool already used in the recent past.
The last time Japanese authorities officially confirmed an intervention in the foreign exchange market was in May 2026, when they allocated 11.73 trillion yen (approximately $73.6 billion USD) to curb the persistent weakness of the yen against the dollar.
That intervention had a temporary effect on the market, but pressure on the Japanese currency continued due to various macroeconomic factors.
The depreciation of the yen can be explained by several factors including:
The weakness of the yen has significant consequences for the world economy:
For Japan: Japanese exports become more competitive, but imports become more expensive, affecting citizens' purchasing power and increasing the country's energy costs.
For emerging economies: A strengthened dollar pressures local exchange rates and affects international reserves. Countries like Argentina, which projects energy exports of USD 11 billion in 2026, must monitor these global currency movements.
Currency intervention: It is a coordinated action by a central bank or monetary authority to influence the exchange rate of its currency. It can involve buying or selling foreign currencies using international reserves. Japan has resorted to this tool on multiple occasions to stabilize the yen.
Source: EFE Agency, Jiji Press, Infobae | June 24, 2026
Alfredo S. Quiroga
