Yen weakens to near 40-year low of 162 vs dollar

The Japanese yen traded at the 162 level against the dollar in Tokyo on Tuesday, the weakest in almost 40 years. The currency is being sold on the view the interest-rate gap between Japan and the US is unlikely to narrow soon.

The last time the pair traded in the 162 range was in December 1986. On the stock market, Tokyo’s Nikkei 225 index closed higher for the second straight session to recover the 70,000 mark. The index on Friday had its third-biggest single-day drop of 3,000 points. That followed Thursday’s jump of more than 3,100 points, its fourth-largest ever to a record closing high.