Yen nears key ¥160 level after U.S. inflation data, sparking intervention risk
The prospect of tightening by the U.S. Federal Reserve risks widening the U.S.-Japan rate differential and adding to downward pressure on the yen.
Japan's yen has edged close to the critical ¥160 mark against the U.S. dollar, prompting concerns that the central bank may need to intervene to support the currency. Overnight, the Japanese currency stabilized after plummeting as much as 0.8% to ¥159.94 per greenback, breaking out of its recent tight trading range. This movement occurred as the greenback gained strength following higher-than-anticipated U.S. inflation figures, which raised expectations that the Federal Reserve might need to hike interest rates further.
The yen managed a modest 0.1% gain, trading at ¥159.63 on Thursday. Japan's top currency official, Atsushi Mimura, indicated during a recent statement that the recent currency fluctuations had been "too rapid," suggesting that it is still premature to rule out intervention this summer.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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