Yen weakens past 160 per dollar as intervention concerns return

  • Japanese yen weakened past 160 per dollar on Wednesday.
  • The currency retraced about two-thirds of gains made after intervention about one month ago.
  • Scott Bessent and Satsuki Katayama agreed to coordinate efforts for orderly yen moves.

The Japanese yen weakened past 160 per dollar on Wednesday, reaching its lowest level in a month and giving back about two-thirds of the gains recorded after Tokyo and Washington jointly intervened in currency markets about a month ago. Markets remain alert to possible further intervention because yen weakness is weighing on domestic inflation and the broader Japanese economy. Wide interest rate differentials, rising fiscal concerns in Japan and higher oil prices tied to the conflict in the Middle East have kept pressure on the currency. US Treasury Secretary Scott Bessent met Finance Minister Satsuki Katayama this week, and the two agreed to keep coordinating efforts to promote orderly yen movements. Bessent also urged BOJ Governor Kazuo Ueda to take decisive monetary steps against yen weakness, reinforcing expectations that the Bank of Japan could raise interest rates this month.

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