A big fall in the value of the yen is casting a pall over the Japanese economy, which is already facing significant pressure from the pandemic and the Russian invasion of Ukraine.

The yen dipped to a nearly seven-year low on Monday, plunging to the ¥125 line after the Bank of Japan intervened to prevent government bond yields from rising.

The move by the BOJ prompted investors to sell the yen amid expectations that the interest rate gap between Japan and the United States would widen, as the Federal Reserve is gearing up for more rate hikes. The yen’s value against the U.S. dollar has dropped more than 7% so far this year.