What the Yen’s Massive Breakdown Means for the US Stock Market

Japan closed out the second quarter with a triple set of historic events this week, including a massive 38% gain for the and the highest interest rates in more than thirty years following Bank of Japan tightening in June. The third of the three, however, is likely to cause the largest upheaval in global markets and could rattle U.S. stocks over the coming weeks, as authorities in both Tokyo and Washington search for a solution to what is quickly becoming a systemic issue for the world’s fourth-largest economy. Japan’s yen fell to the lowest levels against the U.S. dollar in more than 4 decades on Tuesday, changing hands at 162.41 and extending its second-quarter decline to around 4%.