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Yen Hits 40-Year Low, MUFG Warns Inflation Surge

7/7/2026

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Story summary
  • Mitsubishi UFJ Financial Group chief executive Junichi Hanzawa warned that a depreciating yen could spark inflation, weaken consumer sentiment and curb growth.
  • The yen fell to a 40-year low of 162.66 per dollar last week after the Bank of Japan raised rates to 1% in June 2026.
  • Tokyo core inflation rose in June 2026 as the U.S.–Israeli war on Iran and energy disruptions lifted prices.