Affected by factors such as continued tension in the Middle East and investors selling off yen, the exchange rate of yen against the US dollar in the New York foreign exchange market once fell to the 163 yen range of 1 US dollar to 163 yen on the 21st EST, a new low since December 1986. Analysts believe that the situation in the Middle East has recently escalated again, and the market is worried that the blockage of energy transportation will push up international oil prices. Since Japan is highly dependent on energy imports, the market expects that rising oil prices will increase Japan's trade deficit, and investors are selling yen and buying dollars as a result. At the same time, Japanese domestic factors also continued to suppress the yen's trend. On the one hand, interest spreads between Japan and major European and American economies are still large; on the other hand, the market expects Japanese Prime Minister Sanae Takaichi to continue implementing the so-called “active fiscal policy” and relax fiscal discipline, which further increases the pressure on the yen to depreciate. As the yen exchange rate hits a low in nearly 40 years, the market's expectations that the Japanese government and central bank will once again interfere in the foreign exchange market are increasing.

Affected by factors such as continued tension in the Middle East and investors selling off yen, the exchange rate of yen against the US dollar in the New York foreign exchange market once fell to the 163 yen range of 1 US dollar to 163 yen on the 21st EST, a new low since December 1986. Analysts believe that the situation in the Middle East has recently escalated again, and the market is worried that the blockage of energy transportation will push up international oil prices. Since Japan is highly dependent on energy imports, the market expects that rising oil prices will increase Japan's trade deficit, and investors are selling yen and buying dollars as a result. At the same time, Japanese domestic factors also continued to suppress the yen's trend. On the one hand, interest spreads between Japan and major European and American economies are still large; on the other hand, the market expects Japanese Prime Minister Sanae Takaichi to continue implementing the so-called “active fiscal policy” and relax fiscal discipline, which further increases the pressure on the yen to depreciate. As the yen exchange rate hits a low in nearly 40 years, the market's expectations that the Japanese government and central bank will once again interfere in the foreign exchange market are increasing.