Yen hits 39-year low amid Iran tensions and Takaichi plan

The Japanese yen fell to a 39-year low of 163 per dollar on July 22, 2026, driven by rising tensions in Iran and a policy plan from Japanese politician Sanae Takaichi. The decline marks the yen's weakest level since 1986, with some analysts calling it a 40-year low. The drop is linked to a combination of geopolitical risks and domestic policy concerns, creating a 'doom loop' for Japan's economy. Meanwhile, Japan's power prices also surged to a 3.5-year high, adding to economic pressures.