Japanese yen falls to 40-year low as dollar passes 163 yen

The Japanese yen slid to 163.24 per dollar in Tuesday trading (30 Tir), its weakest level since late 1986. A broad strengthening of the dollar following the latest round of military tensions in West Asia, higher oil prices and concerns over US inflation has been cited as the main driver.

Japanese officials warned on Wednesday they would intervene in the currency market if needed to curb the yen's slide. Finance Minister Satsuki Katayama said Tokyo is ready to act decisively, and Chief Cabinet Secretary Minoru Kihara stressed the government's readiness to respond in a timely manner. A weaker yen raises import costs and inflationary pressure in Japan.