02.07.2026 14:11
The Japanese yen has fallen to its lowest level against the US dollar since 1986, raising concerns in global markets. Experts note that the interest rate gap between the US and Japan, along with rising energy prices, has increased pressure on the yen. They warned that Japan could intervene in the market and that a potential unwinding of carry trade operations might lead to sharp fluctuations in global stock markets.
Global financial markets have turned their attention to Japan. The Japanese yen has fallen to its lowest level against the US dollar since 1986, marking its weakest point in nearly 40 years.
Analysts point to the interest rate gap between the US and Japan, rising geopolitical risks, and increasing energy prices as factors behind the yen's depreciation.
INTEREST RATE DIFFERENTIAL STRENGTHENS THE DOLLAR
The US Federal Reserve (Fed) maintaining high interest rates, while the Bank of Japan (BOJ) lags behind despite rate hikes, has led investors to favor the dollar. This situation has strengthened the dollar while increasing pressure on the Japanese yen.
It is stated that rising oil prices are also adding to the pressure on the yen in Japan, which is heavily dependent on energy imports.
EXPECTATION OF INTERVENTION FROM JAPAN
Following the historic depreciation of the yen, expectations have strengthened in the markets that the Japanese government might intervene in the foreign exchange market again.
Experts note that while the Tokyo administration has previously intervened with billions of dollars, those measures had limited impact, and they suggest that a new intervention could be on the agenda.
CARRY TRADE RISK ON THE AGENDA
Another closely watched issue in the markets is carry trade transactions. It is assessed that a potential unwinding of these trades, where investors borrow in the low-interest Japanese yen and invest in high-yield assets, could increase selling pressure in global markets, particularly in US tech stocks.
Experts believe that potential intervention decisions from Japan will be critically important in determining the direction of global markets in the coming days.