Yen slides past ¥160 per dollar, wiping out half of intervention gains
Yen weakens past ¥160 per dollar, eroding intervention gains
The yen weakened past the key ¥160-per-dollar level, extending a slide that has erased more than half of its intervention-fueled gains. The currency slipped as much as 0.5% to ¥160.16 after Federal Reserve Chairman Kevin Warsh's hawkish comments boosted the dollar. Traders are watching for potential intervention, with analysts noting that the move is broadly dollar- and U.S.-rates-driven, so authorities may be patient. The yen has been under pressure since failing to break ¥155 earlier this month, despite coordinated U.S.-Japan action on July 31, the first since 1998. The Bank of Japan meets next month, with markets pricing in an 80% chance of a hike.
160s is no longer a valuation level. It's becoming a policy level. Washington and Tokyo have effectively put a political line in the sand in the mid-160s.
- shoobiedoo
I live in Japan and five years ago my drinking buddy at the time only had USD and was about to get on the shinkansen. He needed Yen ASAP. So he said, "dude I'll trade you a 100USD for 10000YEN." At the time it was an easy fifteen bucks or something profit after exchange, so I said, sure, here ya go.
I put it in a drawer and forgot about it until a few weeks ago. I'm going to the moon with this, ladies and gentlemen
- timr
The BoJ has to raise rates. Dumping Dollars to buy Yen is spitting in the wind.
- chenzhekl
Unless Japan raises interest rates or tightens fiscal spending, no amount of intervention will work as long as the structural problems remain.
- cco
Defending currency has to have some quip, right? Something like, "The market can remain honest longer than your central bank can stay solvent"?
Always seems to go wrong. Like spraying water on a forest fire with a straw.
- Stevvo
Fantastic as someone looking for an affordable vacation destination.