Yen's Decline Sparks Fears of Global Market Volatility

The Japanese yen's value has been under pressure since joint U.S.-Japan intervention into currency markets on July 31, when it pushed the yen from ¥164 to the U.S. dollar down to a strong point of ¥156.15.

This decline has undone around half of the gains in the yen since the intervention.

The yen is now set to re-test the ¥160 “red line” that was breached in March, and it remains at levels last seen in 1986.

U.S. Treasury Sec. Scott Bessent has been urging Japan to sustain the intervention effect, citing concerns about a rapid strengthening of the yen, which could threaten capital markets globally.