Yen Nears 160 Per Dollar as Fed Hike Bets Fuel Dollar Surge
(MENAFN) The Japanese yen plunged to its weakest level in more than two months against the US dollar early Thursday, edging toward the closely watched 160 threshold and raising the risk of official action to prop it up.
The currency changed hands at 159.674 per dollar at 0554GMT. The slide prompted Tokyo officials to repeat their warnings that they may intervene in the foreign exchange market.
Mounting wagers on tighter US monetary policy drove the move, widening the gap between American and Japanese interest rates. Investors ramped up those bets after October inflation data came in hotter than forecast.
The US dollar index, a gauge of the greenback against a basket of major currencies, notched its strongest close since April 2025, underscoring the currency’s broad rally.
Hawkish comments from several Federal Reserve officials added fuel. They voiced unease over stubborn price pressures and kept open the possibility of a bigger 50-basis-point rate increase.
The currency changed hands at 159.674 per dollar at 0554GMT. The slide prompted Tokyo officials to repeat their warnings that they may intervene in the foreign exchange market.
Mounting wagers on tighter US monetary policy drove the move, widening the gap between American and Japanese interest rates. Investors ramped up those bets after October inflation data came in hotter than forecast.
The US dollar index, a gauge of the greenback against a basket of major currencies, notched its strongest close since April 2025, underscoring the currency’s broad rally.
Hawkish comments from several Federal Reserve officials added fuel. They voiced unease over stubborn price pressures and kept open the possibility of a bigger 50-basis-point rate increase.
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