Yen Tumbles Below Intervention Level After Fed Chair's Jackson Hole Speech

The Japanese yen has fallen to its lowest point in months after Federal Reserve Chair Kevin Warsh's speech at Jackson Hole, Wyoming. The yen briefly dipped below 160 per U.S. dollar on Friday in New York for the first time since Japan and the United States conducted a joint market intervention in late July.

The intervention, which involved buying yen and selling dollars, was the first of its kind between the two countries in 15 years. The goal of the operation was to stabilize the value of the yen against the dollar by reducing interest rate differentials between the two nations.

Warsh's speech left investors speculating that a potential interest rate hike could widen the gap between U.S.-Japan interest rates, causing the yen to depreciate further. The Fed chair emphasized the importance of keeping inflation under control, stating 'We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do.'