The Japanese yen strengthened past 160 per dollar on Monday, reversing earlier-session losses after the country’s top currency official escalated verbal warnings aimed at halting the currency’s decline. Vice Finance Minister for International Affairs Atsushi Mimura told reporters that authorities are increasingly concerned about rising speculative activity, not only in crude oil futures but also in foreign exchange markets. He reiterated that the government stands ready to take decisive action if needed.
His remarks followed the yen’s slide beyond the closely watched 160-per-dollar threshold, a level that previously triggered Tokyo’s intervention in the currency market in July 2024. The yen has been pressured by a sharp rise in oil prices linked to the ongoing conflict in the Middle East, as higher import costs risk undermining Japan’s economic recovery. The war involving Iran showed no signs of de-escalation, with Iran-backed Houthi militants in Yemen joining the fighting and additional US troops being deployed to the region.
