DBS Warns of Rising Intervention Risk as USD/JPY Flirts with 160 Level

Singapore's DBS Bank has warned of an elevated risk of Japanese authorities intervening in the currency market as the yen weakens toward the 160 level against the U.S. dollar.

The level is significant because it marks the zone where Japanese authorities stepped in to support the yen in late 2022, spending billions to curb what they termed speculative moves.

The warning comes amid persistent yen weakness driven by a wide interest rate differential between Japan and the U.S., with investors preferring higher-yielding dollar assets over the yen.