Overview
- The dollar traded near 160.15 yen, the weakest level for Japan's currency since July 2024.
- Traders view the 160 mark as a possible trigger for officials to buy yen to slow the drop.
- Tokyo has warned it could step in if moves look excessive, having last intervened when the rate hit about 161 in July 2024.
- The dollar index climbed as investors looked for safety in U.S. currency rather than gold or government bonds during the Middle East conflict.
- Pressure on the yen has also built at home as Prime Minister Sanae Takaichi seeks more fiscal spending while the Bank of Japan tries to raise rates, and the yen’s slide has topped 2% since the war, reflecting Japan’s heavy energy import needs and large public debt.