Yen weakest since 1986 at ¥161.96 despite Sanae Takaichi intervention
Japan's yen just dropped to its weakest point since 1986, trading at 161.96 against the US dollar.
This slump is making imported goods more expensive and driving up everyday costs for people in Japan, putting extra pressure on Prime Minister Sanae Takaichi's government, even after spending a record ¥11.73 trillion ($72.5 billion) trying to stop the slide.
BOJ at 1%, Katayama seeks action
The Bank of Japan bumped interest rates up to 1% (the highest since 1995), but it hasn't helped much because markets expect the US Federal Reserve to keep raising rates too.
Finance Minister Satsuki Katayama says she's ready for "bold action" and is talking joint moves with US officials, but experts say deeper issues, like big gaps in interest rates, an aging population, and rising public debt, are making a real recovery tough right now.