Yen slides past 160 per dollar, eroding recent intervention gains

On Thursday, the Japanese yen slipped past the 160‑per‑dollar mark for the first time since 2019, prompting a modest intervention by the government and the Bank of Japan (BOJ). At 09:30 GMT the currency traded at 160.12 yen to the U.S. dollar, a level that has raised alarms about rising import costs and inflationary pressure for Japan’s export‑heavy economy. The BOJ’s intervention involved selling a small quantity of yen in the foreign‑exchange market in an effort to curb further depreciation, but officials said the move was limited in scope and would not alter the central bank’s long‑term policy stance.

The yen’s slide has been driven largely by the U.S. Federal Reserve’s aggressive rate hikes and a shift in global risk sentiment that has favored the dollar. Analysts note that a weaker yen can boost Japan’s export competitiveness, yet it also inflates the cost of imported energy and raw materials, potentially feeding domestic price rises. The BOJ has signaled that it will continue to monitor the market closely and will act if the yen’s decline threatens to destabilise the economy, while maintaining its commitment to a low‑interest‑rate environment to support growth.