USD/JPY reaches levels last seen in 1986, raising expectations of potential Bank of Japan intervention amid inflation concerns.
The Japanese yen fell to its weakest level since 1986 against the US dollar, trading near historic lows. The decline has reignited speculation about potential currency intervention by Japanese authorities to stabilize the yen.
A former senior Bank of Japan official suggested the central bank may raise interest rates before December, citing inflation measures averaging close to 3%, above the 2% target. The People’s Bank of China is expected to set the USD/CNY reference rate at 6.7877, reflecting broader currency market movements.
Markets remain on edge as the yen’s weakness persists, with traders monitoring for signs of official action to curb further depreciation.