The Japanese yen strengthened to 148.50 against the US dollar, with a peak of 148.56, marking a four-and-a-half-month high. This appreciation was driven by concerns over the US economy, including weaker-than-expected economic indicators and declining long-term interest rates, which narrowed the interest rate differential between Japan and the United States. The stronger yen has contributed to a decline in Japan's Nikkei 225 stock index, which fell below 38,000 for the first time since December 2024. The index saw a drop of over 600 points at one stage, closing at 38,237 on February 25, 2025, and at 37,814.04 during the morning session on February 26. Losses were led by tech stocks, which were impacted by the yen's rise and a decline in US tech shares, including the Nasdaq. In addition to financial market developments, Japan is grappling with rising food prices, including a surge in rice costs. The price of rice has risen by 90% year-on-year, with the average price for 5 kilograms reaching 3,892 yen. Speculative market behavior, alongside unfavorable weather and rising production costs, has exacerbated the situation. Some reports indicate a 71% year-on-year increase in rice prices as of January 2025.