The yen weakened to 158.93 against the dollar, approaching levels that may trigger Japanese intervention amid Fed rate hike bets.
The yen fell for a sixth straight session, pushing USD/JPY to 158.93 as the dollar strengthened on expectations of Federal Reserve rate hikes this year. The move brings the yen closer to levels that could prompt Japanese authorities to intervene in currency markets.
The yen has declined steadily against the dollar, reflecting diverging monetary policy outlooks between the U.S. and Japan. While the Fed signals potential rate increases to combat inflation, the Bank of Japan remains committed to ultra-loose policy, weighing on the currency.
Traders are monitoring the 159 level, a threshold that previously triggered intervention by Japanese officials in 2022 to support the yen.