29.06.202602:45:40UTC+00Yen Languishes Near 4-Decade Low

The Japanese yen was steady at around 161.7 per dollar on Monday, hovering near its weakest level since 1986, even as data showed retail sales rose 5.3% in May — the fastest pace since November 2023 — largely supported by a government stimulus package that bolstered consumer spending. A run of solid economic indicators, combined with hawkish comments from central bank officials, has strengthened expectations that the Bank of Japan will continue to raise interest rates this year, with its next policy decision due on July 31. Nonetheless, the yen remained under pressure despite repeated verbal warnings from the Finance Ministry and record currency intervention nearly two months ago, as a strong US dollar and the wide interest rate differential between the US and Japan continued to weigh on the currency, amid expectations that the Federal Reserve will also raise rates later this year.