Markets

Yen Weakens to ¥160 Per Dollar Level for 1st Time in 2 Months

REUTERS/Issei Kato/File Photo
The Bank of Japan is seen in Tokyo in September 20, 2023.

By Azusa Nakanishi / Yomiuri Shimbun Correspondent

19:53 JST, June 26, 2024

LONDON — The yen temporarily weakened to the ¥160 per dollar level on the London foreign exchange market Wednesday, the first time in about two months since April 29, when the government and the Bank of Japan are believed to have intervened in the market.

The yen was sold against the dollar on the strength of the U.S. economy. Also behind the dollar’s strength is that expectations of an imminent cut of the U.S. interest rate were reduced by comments from a senior Federal Reserve Board official.

When the yen weakened to ¥160 level in April, the Japanese government and central bank are believed to have intervened to buy the yen and sell the dollar, and the exchange rate quickly turned around to the strengthening of the yen.

The market is becoming increasingly wary of whether intervention will take place again.