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Yen nears 160 per dollar, reviving intervention concerns
The yen slipped after the US and Japan’s first coordinated intervention since 1998, leaving traders watching whether USD/JPY breaks decisively above 160.
The yen moved closer to 160 per US dollar, according to LiveMint Markets, as the currency weakened modestly and traders turned attention back to the risk of renewed Japanese intervention.
The Japanese currency ended little changed after falling as much as 0.1% to 159.39 per dollar on Tuesday, with the 160 level acting as a psychological and historically contained point for yen weakness.
LiveMint Markets noted the backdrop includes the US and Japan’s first coordinated intervention to support the yen since 1998, which helped pull the yen up from about 164 per dollar in late July toward a peak of 155 earlier this month.
Bank strategist Masayuki Nakajima of Mizuho Bank said that a decisive move above 160 could intensify intervention worries, while Bank of America’s Alex Cohen said the effects of the last round of intervention have largely faded amid rate differentials and concerns around Japan’s fiscal outlook.