Yen Weakens Past ¥160 Per Dollar, Predicted to Reach Pre-Intervention High
The Japanese yen has weakened past ¥160 per dollar for the first time in nearly a month. According to Sumitomo Mitsui Banking, without any factors to halt this trend, the dollar rate could reach the pre-intervention high just below ¥164.
This development is concerning given that Japan and the US carried out a coordinated currency intervention at the end of July, which saw Japan spend approximately $100 billion. This intervention led to a brief strengthening of the yen from about ¥163.9 per dollar to around ¥155, but it has since lost ground.
Sumitomo Mitsui Banking noted that before the rate approaches ¥164, Japanese Finance Minister Satsuki Katayama or US Treasury Secretary Scott Bessent could resort to verbal warnings to slow the yen's weakening or reverse its direction.