Yen Weakens Past $158 Amid Persistent Structural Pressure

The Japanese yen weakened past $158 per dollar on Monday, reversing gains from the previous session. This comes after a joint intervention by Tokyo and Washington failed to sustain the rally amid persistent structural pressure on the currency.

The yen remains weighed down by wide interest rate differentials, mounting fiscal concerns, and elevated energy and import costs.

Lately, Japan's current account surplus narrowed in June as strong exports of AI-related electronics were offset by higher imports driven by increased crude oil purchases. The Bank of Japan also highlighted growing risks of accelerating inflation in its summary of opinions from the July meeting, with one board member suggesting a quicker pace of interest rate hikes.