Yen Weakness Persists Despite US-Japan Intervention

The yen has weakened back towards 160 per dollar despite a joint intervention by the US and Japan, which had previously driven its exchange rate above 163.8 yen.

A 2.75 percentage-point interest-rate gap between the US and Japan remains the main driver of yen weakness, according to Jesper Koll, an executive at Monex Group.

Rising oil prices added pressure on the yen as talks on reopening the Strait of Hormuz lost momentum, with Japan relying on the Middle East for 90% of its crude oil imports.

The dollar has resumed its upward march since falling to 155 yen after the US-Japan joint intervention late last month.