The Japanese yen traded around 161.5 per dollar on Wednesday, hovering near its weakest level since 1986, as repeated verbal interventions by officials did little to support the currency. Earlier in the week, Finance Minister Satsuki Katayama said she had spoken with US Treasury Secretary Scott Bessent, reaffirming their shared commitment to coordinate in foreign exchange markets if necessary.
The yen remained under pressure from a stronger dollar and the wide interest rate differential between the US and Japan. Markets have also grown increasingly skeptical about Tokyo’s willingness to undertake further currency intervention, after a record-sized operation nearly two months ago sharply reduced foreign exchange reserves.
Meanwhile, the Bank of Japan’s Summary of Opinions from its June meeting indicated that policymakers generally supported continued interest rate hikes, pointing to underlying inflation’s progress toward the 2% target and financial conditions that remain broadly accommodative.
