Yen crashes toward 160, Japan warns of “bold steps”

The Japanese yen is nearing the critical 160 level against the Dollar:

The yen weakened to 159.75 on Monday, matching its weakest level of the year, as the US Dollar strengthened on safe-haven demand amid the Middle East crisis.

As a result, Japan’s finance minister said authorities are “watching developments with the utmost sense of urgency” and are prepared to take “bold steps” if necessary, a phrase that signals potential direct market intervention.

In 2024, authorities intervened several times after the yen weakened past 160 versus USD, making the current level a critical threshold.

The Fed and the BOJ have rate decisions this week, with both widely expected to hold rates unchanged.

The yen is caught between a strong Dollar, surging oil import costs, and a central bank that is running out of room to stay dovish.

Watch what is happening in Japan

Leave a Comment


This site uses Akismet to reduce spam. Learn how your comment data is processed.