The Japanese yen depreciated toward 151 per dollar on Tuesday, hitting its lowest levels in nearly three months and breaching the key 150 per dollar mark that markets fear could prompt another currency intervention from Japanese authorities.
Yen strengthens to over 150 against the US dollar
However, Japan’s Deputy Chief Cabinet Secretary Aoki declined to comment on currency moves, in contrast to top currency diplomat Atsushi Mimura who reiterated last week that they are closely watching foreign exchange moves and that excess volatility is undesirable. Japanese authorities intervened in the currency markets earlier this year when the yen breached the 160 per dollar level, with markets watching the 150 level as a potential new line in the sand.
The yen started weakening in September
The yen started weakening in mid-September on growing uncertainty about the path for Bank of Japan interest rate hikes. The local currency also came under pressure from a rallying dollar which benefited from strong US economic data and rising odds of another Trump presidency.
