Yen Tumbles as Dollar Strengthens Amid Inflation Fears

The Japanese yen has come under pressure in recent days due to the strengthening US dollar. On Thursday, it traded around 158 per dollar, a level not seen in three weeks.

This trend is largely attributed to robust US private-sector activity data that reinforced expectations for further Federal Reserve rate hikes. Rising Treasury yields and elevated oil prices have also added to the pressure on the yen.

The Bank of Japan has been closely watching the yen's performance, particularly as it approaches the 160 level. In fact, reports indicate that the BOJ conducted a rate check with market participants last Friday, which may suggest possible intervention is being considered.