The yen fell below 160 to the dollar: Tokyo warned of possible intervention

The yen fell below 160 to the dollar

The Japanese yen on Friday weakened below the psychologically important level of 160 to the dollar, hitting its lowest level since early September after pressure on the currency continued throughout the week. The Anadolu agency reported this.

Tokyo warns of possible measures

The fall in the exchange rate prompted Japanese authorities to warn of possible intervention in the currency market. Finance Minister Satsuki Katayama said Japanese officials would maintain close coordination with their American counterparts and, if necessary, take appropriate measures against excessive and sharp fluctuations in the exchange rate. Japan's top currency diplomat, Atsushi Mimura, for his part, warned investors against ignoring the events of last summer, when Japanese and American authorities jointly conducted interventions to support the yen.

The cause of the fall — the strength of the dollar

According to Anadolu, the latest decline in the yen was largely driven by a broad strengthening of the US dollar amid growing expectations of a more aggressive interest rate hike by the Federal Reserve. These expectations intensified after stronger-than-expected US inflation data and increasingly hawkish statements from Fed officials. Thus, the current situation differs from last year's: back then, the intervention was carried out jointly with the United States, whereas now Tokyo is merely signaling its readiness to act and emphasizing coordination with the American side.