Yen Plunges Near 160 Per Dollar Amid Intervention Fears

The Japanese yen has been on a two-week decline, bringing it perilously close to the 160-per-dollar mark. This level is seen as a test of Japan's tolerance for further depreciation.

The Bank of Japan accelerated its tightening cycle after its September 18 policy meeting, but policymakers remain divided. The US, too, appears to be moving towards a more hawkish monetary policy path.

Rising U.S. yields could put additional pressure on the yen. A rapid move above 160 would significantly increase the likelihood of official action, particularly given the precedent for coordinated intervention.