Yen's Weekly Loss Sparks BOJ Intervention Fears

The Japanese yen is experiencing its largest weekly loss in about a month, falling roughly 0.9% to 159.15 per dollar.

This decline mirrors a similar selloff in May, when it also fell back after official buying, and has left traders wondering whether the Bank of Japan will need to intervene again.

Mark Dowding, CIO for fixed income at RBC BlueBay Asset Management, notes that 'it will be interesting to see whether the yen bears test the limits of intervention in the coming days'.

The yen has surrendered half its gains from late July and early August's intervention, and traders are now watching for a potential trigger at the 160 level.