Yen Nears 160 Per Dollar as Two-Week Slide Raises Intervention Risk
The yen has weakened for two straight weeks after the Bank of Japan’s Sept. 18 policy meeting, renewing attention on Japan’s tolerance for further depreciation.
The yen is nearing 160 per dollar after a two-week decline, renewing attention on the risk of Japanese authorities taking action to support the currency.
The yen has weakened for two consecutive weeks following the Bank of Japan’s Sept. 18 policy meeting. The 160 yen-per-dollar level is seen as a test of Japan’s tolerance for further depreciation.
The Bank of Japan has accelerated its tightening cycle, but disagreement remains among policymakers. The United States also appears to be moving toward a more hawkish policy path.
Rising U.S. yields could put further pressure on the yen. A rapid move above 160 would materially increase the likelihood of official action, particularly given the precedent for coordinated intervention.
