The Japanese yen fell to its lowest level against the U.S. dollar since 1986, dropping as much as 0.1% to 161.96 per dollar on Monday. The currency broke past the 161.95 level last reached in July 2024, when Japanese authorities intervened to support the exchange rate. The decline comes despite the Bank of Japan raising its benchmark interest rate to 1% on June 16, the highest since 1995, as traders anticipate the Federal Reserve will maintain a hawkish stance. Japanese Finance Minister Satsuki Katayama stated on June 19 that authorities remain prepared to take bold action against excessive speculative moves, noting that the U.S. and Japan are increasingly aligned on foreign exchange policy after her meeting with U.S. Treasury Secretary Scott Bessent. Japan previously spent a record 11.73 trillion yen, or $72.5 billion, intervening in currency markets between April 28 and May 27 after the yen first dropped past 160 per dollar.