The record
Written from the 1 report below. Nothing here is unsourced.
- The Japanese yen fell past 163 per dollar for the first time since 1986, its weakest level in four decades, driven by US-Iran tensions, higher oil prices, and wide interest-rate differentials with the US.
- Japan spent ¥11.73 trillion ($71.9 billion) intervening between April 28 and May 27, yet the slide has continued, and Finance Minister Satsuki Katayama has warned again of possible action.
- Tokyo has floated measures like encouraging pension fund repatriation and tax-free holdings of government bonds, but investors see these as unlikely to reverse near-term pressure.
- Analysts say markets would likely treat any intervention as a chance to re-enter bets against the yen, with 165 seen as the next key level.
What to watch next
- Whether Japanese authorities intervene to support the yen after the Finance Minister's warnings
- Whether the yen breaks toward the 165 per dollar level flagged by strategists
- How US-Iran tensions and oil prices affect US yields and the yen carry trade
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Named Japan · United States · Iran · Bank of Japan · Capital.com · Government Pension Investment Fund · Kyle Rodda · Mark Cranfield · Ministry of Finance (Japan) · Rinto Maruyama · Satsuki Katayama · SMBC Nikko Securities Inc.
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