# What is driving the weak yen? Interest-rate gap with major economies seen as the biggest factor

https://mins.news/en/item/12984

- Toyo Keizai, 2026-08-04 18:52 UTC
- Economy
- Original: https://toyokeizai.net/articles/-/953770?utm_source=rss&utm_medium=http&utm_campaign=link_back

> Japanese policymakers are growing more wary that the yen’s downward trend has continued even after intervention. A weaker yen can push up import prices and potentially increase the burden on households. The currency’s weakness is presented as a concern not only for Japan but also for the United States. The large interest-rate gap between Japan and other major economies, including Japan’s ultra-low rates, is identified as the main driver. Some voices also fear declining confidence in Japanese assets.

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