The Japanese yen weakens past 159.50 against the dollar, approaching levels that previously triggered currency intervention by authorities.
The Japanese yen (JPY) extended its decline, with USD/JPY rising above 159.50 and nearing the 160.00 mark on Monday. This level previously prompted official yen-buying intervention by Japanese authorities to stabilize the currency.
The yen’s weakness reflects persistent divergence between U.S. and Japanese monetary policy, with the Federal Reserve maintaining higher interest rates compared to the Bank of Japan. Similar moves in late April saw Tokyo step in to support the yen after it breached 160.00.
Markets are now closely watching for signs of potential intervention as the yen tests critical levels again.