By Laura Matthews NEW YORK, March 27 (Reuters) - The U.S. dollar strengthened against the yen on Friday, hitting 160 yen for the first time since July 2024, when Japanese officials last intervened to
Japanese Yen Hits 160 Per Dollar Amid Weak Currency and Possible Intervention
Dollar Strength and Japanese Yen Weakness in 2024
By Laura Matthews
Dollar Surges to 160 Yen
NEW YORK, March 27 (Reuters) - The U.S. dollar strengthened against the yen on Friday, hitting 160 yen for the first time since July 2024, when Japanese officials last intervened to prop up the currency.
The dollar was last up 0.22% against the yen at 160. 15 per dollar, around levels traders see as a possible trigger for official intervention.
Global Factors Driving Dollar Demand
The dollar index was last up 0.17% to 100.4, heading for its strongest monthly gain in almost a year, as the war in the Middle East has prompted investors to seek safety in the U.S. currency rather than in traditional havens like gold or government bonds.
Impact on Japanese Economy and Policy
The yen and Japanese government bonds have been under almost unremitting pressure for months, as Prime Minister Sanae Takaichi looks to adopt more expansive fiscal policy as a means of stimulating the economy, thereby complicating the job of the Bank of Japan, which is aiming to gradually raise rates to control inflation.
Since the start of the war, the yen has lost over 2% in value against the dollar, making it one of the worst-performing major currencies in the last month, due to Japan's fragile public finances and its heavy dependence on energy imports.
Potential for Official Intervention
Authorities in Tokyo have repeatedly warned they could intervene to prop up the yen if it weakens excessively. They last intervened in July 2024, when the yen reached around 161 to the dollar, its weakest since the 1980's.
(Reporting by Laura Matthews; Editing by Amanda Cooper)
