Wire flash
Yen Nears 160 Level, Intervention Risk Returns to Spotlight
Editorial responsibility
- No named human review is recorded for this page.
- Source reporting is collected, normalized, translated or condensed automatically when needed.
- Automatically published source-backed update
According to market reports, yen intervention risk has returned to the spotlight as Japan resumes trading after a holiday. The dollar-yen pair is approaching the closely watched 160 level after two weeks of yen depreciation. Strategists view the 160 threshold as a key test of Japan's tolerance for yen weakness following the Bank of Japan's September rate hike. Carol Kong, a foreign exchange strategist at Commonwealth Bank of Australia, stated that if US Treasury yields continue to rise and markets keep testing Japan's resolve to defend the yen, dollar-yen could soon break above 160. She added that a rapid breach of this level would significantly increase the likelihood of official action, especially given recent reports of the Bank of Japan conducting 'rate checks'.
Source report
September 24 (Gelonghui) — According to market sources, the risk of yen intervention has once again become a focal point as Japan resumes trading after the holiday period.
Following two consecutive weeks of yen depreciation, the USD/JPY pair is approaching the closely watched 160 level. Strategists note that with the yen continuing to weaken after the Bank of Japan's September rate hike, the 160 threshold has once again emerged as a key test of Japan's tolerance for yen depreciation.
Carol Kong, FX strategist at Commonwealth Bank of Australia (CBA), stated that if U.S. Treasury yields continue to rise and markets keep testing Japan's resolve to defend the yen, USD/JPY could soon break above 160. She added that if the exchange rate rapidly breaches this level, the likelihood of official intervention would increase significantly—particularly in light of recent reports regarding "rate checks" conducted by the Bank of Japan.
Source
格隆汇Neutral / independent
Part of this Story
Yen nears 160 per dollar, reigniting Japanese intervention risk after two-week slide