Yen Depreciates to 160 per Dollar Amid Fears of Further Intervention

The Japanese yen has depreciated to around 160 yen per dollar, after losing half of its gains from joint intervention between the US and Japan in late July and early August.

The currency's decline has raised concerns about whether the two governments will intervene again to stabilize it. State Street strategist Lee Ferridge was quoted by Bloomberg as saying, 'The market seems to be disappointed that there was no additional intervention,' adding, 'Without subsequent intervention, it will continue to fall.'

The yen's value had risen to around 155.2 yen on August 3 due to joint intervention between the US and Japan, which began on July 30. However, since then, it has lost ground and is now trading at a lower level.

The market is expecting further action from the authorities, particularly during the August holiday season when trading volumes are low and price fluctuations are likely to increase. If the yen falls below 160 yen per dollar, the sense of caution against intervention in the foreign exchange market will be heightened.