Yen Falters Near 160-Per-Dollar Threshold as Intervention Impact Wanes

The Japanese yen has been hovering near the psychologically important 160-per-dollar threshold after its value fell 0.9% on Monday, erasing almost half of its gains following a rare U.S.-Japan currency intervention at the end of July.

The intervention initially strengthened the yen to a three-month high of 155.20 but subsequent depreciation suggests that authorities may need to intervene again if the Japanese currency weakens further.

Traders are focused on whether the dollar can break through the 160-yen level, which could increase political and market pressure on Tokyo to act again.