Concerns over Japanese currency intervention
The Japanese yen has fallen to its lowest level in over 35 years against the dollar, reaching 163.24 yen per dollar. This decline was driven by rising oil prices and U.S. Treasury bond yields, amidst ongoing geopolitical tensions, especially in the Middle East, which increased demand for the dollar as a safe haven currency. Analysts expect Japan to once again intervene in the foreign exchange market to support the yen, but such measures will only be effective if the Bank of Japan raises interest rates or if market sentiment toward the country’s financial situation changes. The yen's decline coincides with a rise in U.S. 30-year bond yields to 5.15%, the highest in two months, adding further pressure on the Japanese currency.
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