Yen falls below 160 against the dollar, sparking talks of intervention

The Japanese yen reached a nearly 38-year low against the U.S. dollar, sparking concerns that authorities may intervene in currency markets. This was the weakest level for the yen since 1986, prompting speculation of potential intervention. The last time the yen crossed the 160 level, there was an intervention in May, with the Japanese government spending over $62 billion on currency intervention. Analysts like Carol Kong from the Commonwealth Bank of Australia believe another intervention could be imminent, especially if U.S. economic data is stronger than expected. Masato Kanda, Japan’s top currency diplomat, expressed serious concern about the yen’s rapid decline and suggested that it may be driven by speculators. Authorities have been preparing to act against excessive volatility in the currency markets. The weakening yen has raised alarm and prompted warnings from Japanese officials, signaling that they are closely monitoring the situation. The situation is being closely watched by experts and market participants for potential further government intervention.

Photo credit
www.nbcnews.com