Yen hits 160.8 per dollar, reviving Japan intervention fears
What's new: The slide came after a hawkish Fed signal, even after Japan spent a record 11.7 trillion yen on support last month.
The yen fell to 160.80 per US dollar, its weakest level since July 2024, putting traders back on alert for possible Japanese intervention. The drop followed a stronger dollar after investors raised bets that the Federal Reserve will increase interest rates this year.
The move came despite the Bank of Japan lifting its benchmark rate on Tuesday and despite Tokyo's record 11.7 trillion yen intervention from April 28 to May 27. Deputy BOJ Governor Shinichi Uchida said exchange rates matter but are not a policy target. Finance Minister Satsuki Katayama has warned authorities are ready to respond to sharp foreign-exchange moves. The yen has also faced pressure from the wide US-Japan rate gap and higher oil prices tied to the US-Iran conflict.