Rising oil and gas prices, coupled with higher global yields, weaken the yen as USD/JPY surpasses 163.00 for the first time this year.
The Japanese yen fell to fresh year-to-date lows against the US dollar, with USD/JPY trading above 163.00, driven by surging energy prices and rising global bond yields. The combination has intensified pressure on Japanese policymakers, complicating efforts to stabilize the currency.
The yen and Swiss franc have been among the worst-performing G10 currencies since late February, with EUR/CHF rebounding to 0.9300. Finance Minister Katayama’s recent warnings of potential intervention failed to curb the yen’s decline, as markets perceived no immediate policy shift.
The Bank of Japan may accelerate rate hikes, with September seen as a potential timeline, though a single move may not reverse the yen’s weakness amid persistent inflation risks.