Yen Weakens Past Crucial 160 Level

The Japanese yen appreciated past 160 per dollar on Monday, reversing losses from earlier in the session as the country’s top currency chief stepped up verbal warnings to arrest the currency’s slide. Vice Finance Minister for International Affairs Atsushi Mimura told reporters that concern is growing over rising speculative activity, not only in the crude oil futures market but also in the foreign exchange market. He added that the government would take decisive action if necessary. His remarks came after the yen weakened past the critical 160 per dollar level that had previously prompted Tokyo to intervene in currency markets in July 2024. The yen came under pressure from surging oil prices linked to the Middle East conflict, as higher import costs threatened to derail Japan’s economic recovery. The Iran war showed no signs of easing, with Iran-backed Houthi militants in Yemen joining the hostilities and additional US troops arriving in the region.

The US Dollar exchange rate rose above 160 Japanese Yen in the foreign exchange interbank market.

The Japanese yen weakened past 160 per dollar on Monday, hitting its lowest levels since July 2024 when authorities stepped in to support the currency after it breached the critical threshold. The yen extended its decline despite repeated verbal warnings from Tokyo, with Finance Minister Satsuki Katayama stating last Friday that the government is prepared to take “bold actions” to counter excessive foreign exchange moves. The Finance Ministry also reportedly conducted inquiries with market participants last week about possible intervention in crude oil futures given how speculative moves in commodities are impacting the yen. The currency came under pressure from surging oil prices tied to the Middle East conflict, as higher import costs threatened to derail Japan’s economic recovery. The Iran war also showed no signs of easing after Iran-backed Houthi militants in Yemen joined the hostilities, while more US troops arrived in the region.