Yen Edges Closer to 160 as Intervention Fears Mount

The Japanese yen is edging closer to a key level of 160 per US dollar, sparking concerns that authorities may intervene again to prop up the currency.

The yen had its worst day since mid-February on Monday, weakening by 1 percent, and has now given back some of its gains from the joint intervention between Japan and the US in late July.

Economists are warning that sustained yen strength requires a more hawkish Bank of Japan (BOJ) to overcome market doubts about the country's fiscal outlook and energy vulnerabilities.