Nikkei Hits All-Time High as Yen Plummets to 1986 Levels—What’s Next for Japan?

Tokyo, Monday, 22 June 2026.
Japan’s Nikkei 225 shattered records, soaring past 72,000 as the yen weakened to its lowest point since 1986—just 0.2 yen shy of the historic low. The currency’s collapse, driven by Japan’s ultra-low interest rates amid U.S. tightening, has fueled a stock rally but sparked fears of runaway inflation. With Tokyo’s verbal warnings fading and intervention risks rising, investors are bracing for a volatile showdown between markets and policymakers.