Dollar-Yen Dips Below 160 as Yen-Selling Pressure Builds

The dollar-yen pair touched a fresh low of 159.18 yen per dollar in afternoon Tokyo foreign exchange trading on July 13th, before recovering some ground.

Cross-yen pairs such as euro-yen followed suit, trading with a softer bias. The trading range for the day was 159.18 to 159.48 for dollar-yen, and 183.44 to 183.78 for euro-yen.

The market remains under pressure from yen-selling activity, driven by concerns over Japan's fiscal policy under Prime Minister Sanae Takaichi. The administration's expansionary fiscal stance has raised worries about fiscal deterioration through increased government bond issuance and pressure on the Bank of Japan to maintain prolonged monetary easing.