00:00Now, the Japanese yen has fallen to its weakest level against the US dollar in 40 years,
00:05putting markets on alert for possible government intervention.
00:09The currency slipped to 162 against the dollar in Asian trading on Tuesday,
00:14a level not seen since December 1986.
00:17Japan's Finance Minister Satsuki Katayama says authorities remain ready to act
00:22against excessive moves in the currency market.
00:27The yen has been under pressure for more than two years,
00:30largely because interest rates in Japan remain far lower than those in the United States.
00:34The Bank of Japan raised its key interest rate to 1 percent earlier this month,
00:39its highest level in more than three decades, but the gap with US borrowing costs remains wide.
00:45The Federal Reserve has also indicated it could raise interest rates again before the end of the year,
00:50adding further pressure on the yen.
00:52The conflict involving Iran has added to the strain,
00:55driving up oil prices and increasing costs for energy-importing countries such as Japan.
01:01While a weaker yen makes imports especially feel more expensive,
01:04it has also made Japan a more affordable destination for overseas tourists,
01:08helping to support the country's tourism industry.
01:11The Federal Reserve is a great deal of the world of the world of the world of the world of
01:11the world of the world of the world of the world of the world of the world.
