Central News Agency (CNA Tokyo, June 30 - Reuters) The Japanese yen has fallen to its lowest level in nearly 40 years as investors worry about the economic impact of the Iran conflict and the authorities' struggle to control inflation. The yen fell below 162 per dollar in early trading in Tokyo, the first time since December 1986, and has depreciated by more than 3% since the beginning of the year, sparking speculation that Japanese authorities may intervene again to support the yen. As the yen briefly fell to an intraday low of 162.27 yen, Chief Cabinet Secretary Minoru Terada reiterated at a morning press conference that the government is "always prepared to take action when necessary." The recent depreciation of the yen has broken through its mid-2024 lows, mainly due to market concerns that the Bank of Japan faces a greater risk of being "behind the curve" in controlling inflation compared to its global counterparts. The conflict in Iran has pushed up oil prices, triggering this inflationary pressure. Prime Minister Sanae Takaichi announced in late June a large-scale public and private investment plan to promote economic growth, with an allocation of the equivalent of $2.3 trillion over 14 years. However, due to the relative lack of detailed information on how the funds will be allocated, doubts have resurfaced about whether Japan will embark on a path of further fiscal expansion. Lee Hardman, a senior currency analyst at MUFG Bank, said breaking through 162 yen "is a stark reminder of how weak the yen has become." He pointed out, "Volatile energy prices are weighing on the currency, while the hawkish policy stance of the US Federal Reserve is pushing up US interest rates, driving the dollar higher." Some analyses suggest that the recent surge in the Japanese stock market has also depressed the yen. Since the beginning of the year, the Nikkei 225 index has repeatedly hit new highs, breaking through 72,000 points on the 22nd, mainly driven by foreign capital infl