Yen Sinks Near Three-Week Low as Fed Hike Fears Resurface

The Japanese yen is hovering around 158.3 per dollar, nearing its three-week low as robust US private-sector data fuels expectations of further Federal Reserve rate hikes.

The USD/JPY pair is edging closer to the closely watched 160 mark, prompting concerns about potential intervention after a reported rate check by the Bank of Japan last Friday.

Despite a recent rate hike by the BoJ to 1.25%, its highest since 1995, the Fed's higher interest rates and renewed calls for further hikes continue to underpin the dollar.