Japan’s finance ministry signals readiness to intervene as the yen weakens to levels last seen in 1986 amid diverging monetary policy.
The yen fell to its weakest level since 1986, trading near 160 per USD, as Japan’s finance ministry reiterated its willingness to respond to excessive currency moves. Chief Cabinet Secretary Kihara stated authorities are prepared to take necessary action at any time, though no intervention has been confirmed yet.
China’s manufacturing PMI rose to 50.3 in June, beating forecasts, while Japan’s industrial production missed estimates at +0.5% month-on-month. The Bank of Japan’s board appears more hawkish on paper, but dissenting dovish voices may increase, complicating policy shifts.
Markets remain on edge over potential yen intervention, with traders eyeing inflation signals and BOJ communications for clues on future rate hikes. The dollar strengthened broadly, driven by Fed hawkishness and energy price declines.