Japanese Yen Slides from 3-Month High

2026-01-28 16:35 By Andre Joaquim 1 min. read

The Japanese yen slid past 153.5 per USD, pulling back from the three-month high of 152.2 earlier on Wednesday as the US presidential administration dismissed speculation of a joint foreign exchange intervention with Tokyo to strengthen the yen.

Speculation that Japan was in contact with the US to limit the slide in the yen gained ground after the New York Federal Reserve conducted a rate check on dollar/yen with market dealers on Friday, while Japanese officials signaled close coordination with the US on currency policy and potential market action.

Traders also remain cautious about the risk of unilateral intervention from Tokyo, although Bank of Japan data indicated that authorities have not officially stepped into the market so far.

Still, the yen remains firmly stronger since the start of January as tariff threats by the US against major trading partners triggered a global dollar aversion.

Additionally, the BoJ is likely to extend its hiking cycle this year.



News Stream
Yen Approaches 40-Year Trough
The Japanese yen weakened beyond 161 per dollar on Friday, approching again the lowest level since 1986 despite renewed verbal intervention from Japanese authorities. Chief Cabinet Secretary Minoru Kihara said on Thursday that the government remains prepared to respond to excessive currency movements whenever necessary. The yen has now erased all the gains recorded on April 30, when authorities conducted a record-sized intervention to support the currency. The latest decline came despite the Bank of Japan’s gradual tightening cycle, including a 25-basis-point rate hike to 1% earlier this week aimed at addressing an energy-driven inflation shock linked to the Middle East conflict. The dollar also strengthened following the Federal Reserve’s decision to leave interest rates unchanged while signaling increasing support for additional rate hikes later this year. The widening policy divergence between Japan and the US continued to weigh on the Japanese currency.
2026-06-19
Japanese Yen Hits 23-month Low
The Japanese Yen touched 160.80 against the USD, the lowest since July 2024. Over the past 4 weeks, US Dollar Japanese Yen gained 1.07%, and in the last 12 months, it increased 10.6%.
2026-06-18
Japan Signals Readiness to Respond to Yen Moves
Japan stands ready to act if needed to address excessive exchange-rate volatility, Chief Cabinet Secretary Minoru Kihara said on Thursday. He added that the government is prepared to respond to market moves at any time, stating, "We are ready to respond appropriately to currency moves as needed at any time." He added that officials will continue to closely monitor foreign exchange developments. Kihara noted that while a weaker yen benefits manufacturers by boosting export competitiveness and corporate profits, it also raises import costs, increasing the burden on businesses and households through higher prices. "We need to scrutinise such effects comprehensively," he said, highlighting the government's balanced assessment of the currency's impact on the economy.
2026-06-18