Pakistan, June 30 -- The Japanese yen dropped to its weakest level against the US dollar in nearly 39 years on Monday, reflecting growing concerns that American interest rates could remain higher for longer. The dollar briefly climbed to 162.29 yen, marking the Japanese currency's lowest level since December 1986. As a result, investors closely monitored the market because Japanese authorities have previously stepped in when the yen approached similar levels.

The yen remained under pressure mainly because the interest rate gap between the United States and Japan continued to favor the dollar. Although the Bank of Japan recently increased its benchmark interest rate from 0.75% to 1.00%, the highest level in 31 years, borrowing costs in th...