Yen Rises Past 158, Fueling Intervention Speculation

The Japanese yen surged past 158 against the US dollar on Thursday, prompting speculation of government intervention. The move comes as Prime Minister Sanae Takaichi's administration faces criticism over its aggressive spending plans despite Japan's worsening fiscal health.

US Treasury Secretary Scott Bessent described the yen as 'very undervalued', echoing concerns that excessive volatility in the currency is not healthy. The comments fueled speculation of a possible intervention to prop up the yen, which has been sliding against the dollar for some time.

The government's plans to reduce the consumption tax on food and beverages from 8% to 1% starting next April were also announced by Prime Minister Takaichi. The move aims to alleviate pressure on households struggling with higher prices.