Yen falls to 24-year record low

A monitor showing the Japanese yen exchange rate against the U.S. dollar is seen through the U.S. and Japanese national flags at the foreign exchange trading company in Tokyo on Monday.

The yen reached its lowest mark in 24 years Monday in Tokyo, temporarily exceeding the ¥135 mark against the dollar.

Behind the yen’s dive to a level not seen since 1998 has been Japan’s ultralow interest rates, which have remained low while U.S. interest rates are rising.

Add to that the news Friday that inflation in the United States reached a 40½-year high of 8.6% in May compared to a year earlier, expectations are that the Federal Reserve will raise U.S. interest rates at a faster pace.