Yen Slumps Past 160 as Authorities Warn of Further Intervention
The Japanese yen has weakened to a one-month low after depreciating past 160 per dollar on Wednesday. This marks a significant drop from the gains made when Tokyo and Washington jointly intervened in currency markets about a month ago.
The intervention, which aimed to support the yen, had helped stabilize its value. However, despite authorities' efforts to control its movement, the yen remains under pressure due to wide interest rate differentials, growing fiscal concerns in Japan, and elevated oil prices linked to the conflict in the Middle East.
US Treasury Secretary Scott Bessent met with Finance Minister Satsuki Katayama this week, where they agreed to continue coordinating efforts to achieve 'orderly' yen moves. Bessent also urged BOJ Governor Kazuo Ueda to take 'decisive' monetary steps to combat yen weakness.