【Yen falls below 160, Japan issues another intervention warning】
On November 13, the yen briefly fell below 160 against the U.S. dollar for the first time since early September. Japanese Finance Minister Satsuki Katayama said Friday that recent foreign-exchange movements had been “one-sided and rapid,” and that the government would work closely with the U.S. Treasury and “respond appropriately.” Prime Minister Sanae Takaichi also warned the same day that she would work to maintain order in the foreign-exchange market, hinting at possible intervention.
Reuters reported that a quarterly report released Thursday by the Federal Reserve Bank of New York showed the U.S. bought only about $497 million worth of yen during its July 31 intervention—far below the maximum $10 billion scale previously suggested by Treasury Secretary Bessent. Market participants believe this has weakened the deterrent effect of any future joint intervention. Japan spent a record 15.4 trillion yen (about $96.5 billion) to support the yen from late July to early August, when it had fallen to a 40-year low of 163.99.
Behind the dollar’s strength is rising speculation that the Fed will raise interest rates in December: after October’s CPI came in above expectations, Fed officials put a 50-basis-point rate hike on the table, and the dollar index is near a 19-month high. If USD/JPY breaks above Thursday’s high of 160.30, the next level to watch is the early-September high of 160.39. (Source: Reuters, FXStreet, November 13)
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On November 13, the yen briefly fell below 160 against the U.S. dollar for the first time since early September. Japanese Finance Minister Satsuki Katayama said Friday that recent foreign-exchange movements had been “one-sided and rapid,” and that the government would work closely with the U.S. Treasury and “respond appropriately.” Prime Minister Sanae Takaichi also warned the same day that she would work to maintain order in the foreign-exchange market, hinting at possible intervention.
Reuters reported that a quarterly report released Thursday by the Federal Reserve Bank of New York showed the U.S. bought only about $497 million worth of yen during its July 31 intervention—far below the maximum $10 billion scale previously suggested by Treasury Secretary Bessent. Market participants believe this has weakened the deterrent effect of any future joint intervention. Japan spent a record 15.4 trillion yen (about $96.5 billion) to support the yen from late July to early August, when it had fallen to a 40-year low of 163.99.
Behind the dollar’s strength is rising speculation that the Fed will raise interest rates in December: after October’s CPI came in above expectations, Fed officials put a 50-basis-point rate hike on the table, and the dollar index is near a 19-month high. If USD/JPY breaks above Thursday’s high of 160.30, the next level to watch is the early-September high of 160.39. (Source: Reuters, FXStreet, November 13)
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