Yen Tumbles Below 160 as Fed Chief Bolsters Dollar
The yen has fallen below the key psychological threshold of 160 against the US dollar, despite a joint intervention by the United States and Japan last month.
Federal Reserve Chair Walsh reaffirmed his commitment to achieving inflation targets, which bolstered the dollar's strength and caused the yen to drop as much as 0.5% to 160.16.
U.S. Treasury Secretary Bessent defended last month's intervention in a letter to Democratic Senator Elizabeth Warren, arguing that disorderly movements in the yen could trigger forced sales of U.S. Treasuries, ultimately raising borrowing costs for American households and businesses.
The effectiveness of the intervention has been questioned by market participants, who point out that the gains resulting from the intervention have since been gradually absorbed by the market.