Japanese Yen sinks to weakest level since 1986: 3 reasons behind the historic slide

The Japanese yen has fallen to its weakest level against the US dollar since 1986, trading at 161.98 per dollar, raising expectations of possible intervention by Japanese authorities. The slide continues despite the Bank of Japan raising its benchmark rate to 1%, its highest since 1995, as the widening US-Japan interest rate gap and strong dollar (dollar index at 101.32) weigh on the currency. Net short positions against the yen have climbed to around 11.3 billion dollars near a two-year high, while global markets opened the third quarter cautiously amid US-Iran tensions and rising US Treasury yields.