Yen weakens to 141 zone against U.S. dollar in new 24-year low

The Japanese yen weakened to the 141 zone against the dollar for the first time in 24 years Tuesday afternoon in Tokyo, as investors bought the U.S. currency on persistent expectations of higher interest rates in the United States.

The yen has been rapidly depreciating on the view that the U.S. Federal Reserve will continue its aggressive interest rate hikes to cool the economy, thus widening rate differentials between Japan and the United States.

Tokyo stocks ended almost flat, supported by buying of some exporters on a weaker yen, but trading was limited due to fewer market participants following a national holiday in the United States on Monday.

The 225-issue Nikkei Stock Average ended up 6.9 points, or 0.02 percent, from Monday at 27,626.51. The broader Topix index finished 2.21 points, or 0.11 percent, lower at 1,926.58.

On the top-tier Prime Market, gainers were led by precision instrument, medical equipment, and iron and steel issues, while marine transportation, service, and air transportation issues were among major decliners.

© Kyodo News