The fall of the yen strengthens the competitiveness of Japanese export companies, paving the way for new records on the Tokyo Stock Exchange.
However, Japan's large imports of oil and gas are becoming more expensive. This is pushing up consumer prices in Japan and creating political headwinds for Prime Minister Sanae Takaichi's government.
Between April 28 and May 27, Japan invested 11.73 trillion yen (equivalent to 700 billion kronor) in support purchases of yen. At that time, the exchange rate had fallen below 160 yen per dollar. In Tuesday's trading, the rate was even lower: 162.40 yen per dollar.
The Bank of Japan's interest rate hike to 1 percent two weeks ago, the highest level since 1995, has not helped. Now many are expecting a new round of stimulus purchases.
