Japanese Yen Weakens on Oil Shock, Approaching Multi-Decade Lows

Scotiabank strategists Shaun Osborne and Eric Theoret point to renewed weakness in the Japanese Yen (JPY), which is underperforming all G10 peers amid an oil price shock. The yen's decline has pushed USD/JPY toward levels that risk breaking multi-decade lows.

The analysts highlight that rising crude costs exacerbate Japan's import bill, putting persistent downward pressure on the currency. No specific levels were provided, but the pair continues to trade near the lower end of historical ranges.