Business & Finance
Japanese yen falls past 160 per dollar, reversing earlier intervention gains
The currency's latest decline follows remarks by the Federal Reserve chairman and erases more than half of the gains from July's joint U.S.-Japan intervention.
The short version
- The Japanese yen weakened up to 0.5% to 160.16 against the U.S. dollar.
- The decline erased over half the currency's gains achieved after a joint U.S.-Japan intervention on July 31.
- The dollar strengthened following statements by Federal Reserve Chairman Kevin Warsh regarding inflation targets.
- Traders are watching market levels to see if monetary authorities will intervene again to support the yen.
Key facts
- The Japanese yen depreciated to 160.16 against the U.S. dollar, dropping by as much as 0.5%.[Hacker News]
- The recent slide reversed more than 50% of the gains achieved following a coordinated yen-buying intervention by the U.S. and Japan on July 31.[Hacker News]
- The July 31 joint action marked the first coordinated yen-buying effort between the U.S. and Japan since 1998.[Hacker News]
- The dollar gained support after Federal Reserve Chairman Kevin Warsh reiterated a commitment to achieving the central bank's inflation target.[Hacker News]
What remains uncertain
- It remains uncertain at what threshold or time Japanese or U.S. financial authorities might intervene again to support the yen.[Hacker News]