The Japanese yen has weakened to its lowest level against the U.S. dollar since December 1986, raising speculation that the government might be forced to intervene again to prop up the currency and limit the damage from the sharp selloff.
The U.S. dollar/Japanese yen exchange rate widened during the June 26 trading session, to as low as 160.66 yen to the dollar. Year to date, the yen has slumped by nearly 14 percent against the greenback. Over the past three years, the Japanese currency has also lost about one-third of its value.
