Yen Weakens Past 160 Against Dollar After Warsh's Rate Hike Hint

The Japanese yen weakened further against the US dollar on Friday, breaking through the 160 per dollar threshold for the first time since Japan and the United States intervened in the currency market together at the end of July.

This move came after Federal Reserve Chairman Kevin Warsh's speech at Jackson Hole, Wyoming, where he hinted that a rate hike might be necessary if inflation is not sufficiently under control.

Warsh emphasized that policymakers must be confident that underlying inflation is moving toward their target 'clearly and quickly enough.'

The widening gap between US and Japanese interest rates has been one of the factors contributing to the yen's weakening against the dollar.

This marks a return to levels seen before the joint market intervention in late July, when Japan and the United States bought yen and sold dollars for the first time in 15 years.