Yen nears weakest in 40 years as BOJ hike fails to stem rout

The Japanese yen remains near four-decade lows despite intervention and a recent Bank of Japan rate hike, as investor confidence has been undermined by government spending plans. Analysts expect further intervention to defend key levels, while inflation is anticipated to rise even as fuel subsidies continue. The yen's persistent weakness may influence global carry trades and cross-border capital flows, with limited impact on other major currencies.