Japanese yen falls below 160 per dollar, month low

The Japanese yen depreciated past 160 per dollar on Wednesday, hitting its weakest level in a month and retracing about two-thirds of the gains made when Tokyo and Washington jointly intervened in currency markets about a month ago to support the yen.

Markets remain alert to the possibility of further intervention by authorities given the negative impact of a weak yen on domestic inflation and the broader economy.

The yen remained under pressure from wide interest rate differentials, growing fiscal concerns in Japan and elevated oil prices linked to the conflict in the Middle East.

US Treasury Secretary Scott Bessent also met with Finance Minister Satsuki Katayama this week, where they agreed to continue coordinating efforts to achieve “orderly” yen moves.

Additionally, Bessent urged BOJ Governor Kazuo Ueda to take “decisive” monetary steps to combat yen weakness, reinforcing expectations for a Bank of Japan interest rate hike this month.