The yen is near a key threshold of ¥160 to the U.S. dollar, putting renewed pressure on policymakers in Tokyo to step in and support the currency.Japan’s currency stabilized after falling as much as 0.8% to ¥159.94 per greenback overnight, breaking out of the tight range that had prevailed in recent weeks. The move came as the dollar strengthened after hotter-than-expected U.S. inflation fueled bets that the Federal Reserve may need to raise interest rates further.The yen edged 0.1% higher to ¥159.63 on Thursday after Japan’s chief currency official Atsushi Mimura said he has a strong impression that the currency moves over the past few days had been “too fast,” and that it was too soon to forget about the intervention this summer.
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.
In brief
The yen is near a key threshold of ¥160 to the U.S. dollar, putting renewed pressure on policymakers in Tokyo to step in and support the currency.Japan’s currency stabilized after falling as much as 0.8% to ¥159.94 per greenback overnight, breaking out of the tight range that had prevailed in recent weeks. The move came as the dollar strengthened after hotter-than-expected U.S. inflation fueled bets that the Federal Reserve may need to raise interest rates further.The yen edged 0.1% higher to ¥159.63 on Thursday after Japan’s chief currency official Atsushi Mimura said he has a strong impression that the currency moves over the past few days had been “too fast,” and that it was too soon t…
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