Yen Slumps to Weakest Level in Month Amid Dollar Strength
The Japanese yen has fallen to its weakest level in a month, hitting 160.20 against the US dollar on August 28th. This decline comes after Federal Reserve Chairman Kevin Warsh's statement that inflation is not slowing meaningfully, boosting bets on interest-rate hikes.
Hedge funds have added to short yen bets for two weeks in a row, according to Commodity Futures Trading Commission data. The yen has been under pressure since failing to push through 155 earlier this month following joint action between the US and Japan in July.
Experts are now watching yen levels for signs of intervention from authorities. Bank of America's Alex Cohen said that given the dollar-driven nature of the move, authorities may be more patient before intervening. However, others predict another round of intervention could occur before a potential Bank of Japan hike as early as September.