The Japanese currency weakened to its lowest level against the dollar in almost a year on Tuesday in New York. The greenback traded at 150 yen which is considered a symbolic threshold.

The yen's depreciation was driven by speculation the Federal Reserve would keep its monetary policy tight.

The widening gap between the yields on the 10-year US Treasury and Japanese government bonds prompted investors to buy the dollar and sell the yen.

The last time the Japanese currency weakened beyond the 150 level was in October 2022, when Tokyo intervened to support it.
The yen is expected to continue coming under pressure. The Bank of Japan decided to maintain its massive easing policy at its board meeting on September 22.

In the meantime, many analysts expect interest rates in the US will continue to stay higher for longer. High rates tend to strengthen a country's currency, while low rates have the opposite effect.

The dollar was also pushed higher after the US Congress averted a government shutdown with a stopgap funding bill.