The Japanese yen exchange rate has fallen to a 40 year low, and the Bank of Japan may release a signal to raise interest rates

According to Reuters, the Japanese yen has recently fallen to its lowest level in about 40 years. Japanese Prime Minister Hayao Takashi stated that enhancing economic growth potential and promoting economic strength will help restore market confidence in the yen. The Bank of Japan is expected to keep interest rates unchanged at 1% at its policy meeting ending on July 31, but may signal a rate hike to address the weak yen and inflationary pressures. According to a Reuters survey, most economists expect the Bank of Japan to raise interest rates to 1.25% by the end of the year.