Yen falls to more than two-month low against a strong dollar

The yen approached the 160 mark against the dollar

The Japanese yen fell early Thursday morning to its weakest level in more than two months against the US dollar, approaching the psychologically significant mark of 160 per dollar. According to the Anadolu agency, as of 05:54 GMT the currency was trading at 159.674 per dollar, after which the Tokyo authorities once again warned of possible intervention in the currency market.

What lies behind the yen's weakening

The dollar strengthened against a broad range of currencies: the dollar index, which tracks the US currency against a basket of major partners, posted its highest close since April 2025. Market participants increased their bets on tighter US monetary policy after October inflation data came in stronger than expected. The dollar was also helped by a series of hawkish statements from Federal Reserve officials concerned about persistent price pressure: policymakers left open the possibility of a larger rate hike of 50 basis points at once. As Anadolu notes, the widening gap between the policies of Washington and Tokyo is what is pressuring the yen.