FX.co ★ Yen Slides Toward Key 160 Level Against Dollar

The Japanese yen weakened toward the ¥160-per-dollar level on Wednesday, approaching a threshold that previously prompted official intervention and drawing fresh warnings from Japanese authorities. Finance Minister Satsuki Katayama reiterated that the government stands ready to take appropriate action in the foreign exchange market whenever necessary to counter excessive currency moves. The yen’s latest slide comes despite Tokyo having spent ¥11.7 trillion on currency intervention between April 28 and May 27, highlighting the persistent downward pressure on the Japanese currency. The renewed weakness has also intensified expectations that the Bank of Japan may deliver another interest rate increase later this month, as policymakers grapple with inflationary pressures compounded by higher energy costs stemming from tensions in the Middle East. Market participants are now closely watching remarks from BOJ Governor Kazuo Ueda, who is scheduled to speak later on Wednesday.