Yen slides past 160 per dollar as Tokyo warns it is ready to act again
The yen weakened past 160 to the dollar on Friday for the first time since early September, pushing Japan's currency back to the line that triggered a record rescue this summer. Tokyo responded with louder warnings.
Back at the danger line
Katayama said she was seeing one-sided and rapid moves in currency markets and would stay in contact with the US Treasury, InvestingLive reported. She also said Japan and the US had set out a shared stance on foreign exchange at their recent summit.
Japan's top currency diplomat, Atsushi Mimura, also warned investors not to disregard the summer's joint intervention, Anadolu reported; InvestingLive said he delivered that message on Thursday.
A weaker deterrent
What gave the summer operation extra force was Washington's participation. Treasury Secretary Scott Bessent had hinted at the time that the US share could reach $10 billion, Reuters reported.
A New York Fed report on Thursday showed the real figure was far smaller: about $497 million of euro sales to buy yen. Analysts told Reuters the modest sum weakens the threat of further coordinated action, even though it confirms Washington was willing to step in.
| Measure | Summer 2026 | This week |
|---|---|---|
| Yen per dollar | 163.99, a four-decade yen low (late July) | past 160 (Friday) |
| Japan's spending | ¥15.4 trillion | no new intervention confirmed |
| US role | about $497m of euro sales | Katayama pledges coordination |
Sources: Reuters via CNA; Anadolu Agency; InvestingLive.
Why the yen keeps falling
The pressure is coming mostly from the dollar. Stronger-than-expected US inflation data and hawkish comments from Fed officials have lifted expectations of more rate hikes, Anadolu reported.
Markets were pricing about a 91% chance of a quarter-point Fed hike in December, Xinhua reported, and the 10-year Treasury yield rose to 5.1% on Thursday. InvestingLive said those rate differentials remain the underlying pressure on the yen.
What comes next
At home, the government is bringing forward winter utility subsidies to cushion households, InvestingLive reported. InvestingLive expects choppy, headline-driven trading around 160 in the weeks before the Bank of Japan's December meeting, with both Tokyo and Washington signalling they could act.