Yen Heads for Biggest Weekly Loss Since July Intervention
The Japanese yen is on track for its biggest weekly loss in about a month as intervention efforts from the US and Japan fade, leaving traders to speculate whether rate hikes or another round of official buying will be needed to stem the decline.
The currency has given up roughly half the gains it made after intervention in late July and early August, falling about 0.9% this week to 159.29 per dollar.
Traders see the 160 level as a potential trigger for fresh official action, mirroring a similar selloff in May when the yen backslid after a round of official buying.
The Bank of Japan is considering more aggressive rate hikes following reports that it will raise rates as soon as September, citing three people familiar with policymakers' thinking.