Yen Inches Toward 160 Per Dollar, Raising Intervention Concerns

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Or sign-in if you have an account.oh]y6feet5j93n)y62psqajl_media_dl_1.png Bloomberg(Bloomberg) — The yen edged closer toward a key level against the dollar, raising concerns over Japanese authorities stepping in again to prop up the currency. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe Japanese currency ended the session little changed after falling as much as 0.1% to touch 159.39 per US dollar on Tuesday. The drop had traders bracing for the currency to touch 160 per dollar, a level which has contained yen weakness in the past.“If USD/JPY were to break decisively above the psychologically important 160 level, concerns about intervention could intensify further,” Masayuki Nakajima, senior strategist at Mizuho Bank, wrote in a note.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe yen had its worst day since mid-February on Monday — weakening by 1% — and has now walked back some of it gains from Japan and the US conducting their first coordinated intervention to support the yen since 1998. The joint efforts helped lift the yen from near a four-decade low of about 164 per dollar in late July to a peak of 155 earlier this month. The US and Japan effort to lift the yen marks “a watershed moment,” and authorities “will prevail” in reaching a stronger yen, according to Eurizon SLJ Capital’s Stephen Jen and Joana Freire. “The most important message to take from the joint intervention is that both the US and Japan are determined to see dollar-yen lower.”The yen ended Tuesday at 159.28 per dollar.What Bloomberg Strategists say…“Intervention alone won’t erase the wide US-Japan rate gap or Japan’s fiscal and energy vulnerabilities. Sustained yen strength ultimately requires a more hawkish BOJ in action, with either a larger hike or a longer tightening cycle needed to overcome market doubts.”— Michael Ball, Macro Strategist, Markets LivFor the full analysis, click hereWeakness has crept back into the Japanese currency as market participants refocus on underlying drivers. Wide interest-rate differentials with the US, concerns over Japan’s fiscal outlook and geopolitical uncertainty continue to weigh on the yen even as officials in Tokyo and Washington warn they are prepared to act again if needed.“Barring further policy action, the yen will likely struggle in this environment,” said Alex Cohen, a foreign-exchange strategist at Bank of America. “The impact of the last round of intervention has been wiped out.”(Updates pricing. Adds comment from Eurizon SLJ Capital.)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.