Yen Falls Through 161 Per Dollar as Intervention Wagers Increase
(Bloomberg) -- The yen weakened through 161 per dollar for the first time since 1986 amid broad strength in the greenback, raising the specter of Japan intervening in the market.
The Asian nation’s currency depreciated as much as 0.3% to 161.27 per dollar in Tokyo trading. The greenback extended a rally against major currencies amid a US presidential debate between candidate Donald Trump and incumbent Joe Biden.
The yen risks falling further as traders await key US inflation data due for release later Friday that may give clues to how long the Federal Reserve will keep its hawkish policy stance. A stronger-than-expected reading in the US figures, and a resultant drop in the yen against the dollar, risks spurring Japan to step in the market.
Japan Tries to Stem Depreciation in Yen | Yen’s low and high on the day and intervention amount
The nation’s top currency official Masato Kanda said this week that the authorities stand ready 24 hours a day if necessary. Meanwhile, the Finance Ministry is appointing Atsushi Mimura as its new vice finance minister for international affairs to succeed Kanda, according to a Nikkei report on Friday.
The yen’s decline to 161 per dollar reflected strong demand for the US currency going into the end-of-quarter Tokyo fixing, said Hiroyuki Machida, director of Japan FX & commodities sales at Australia & New Zealand Banking Group.
--With assistance from Daisuke Sakai.
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