Yen hovers near 160 per dollar as intervention fears intensify

The yen remained under pressure against the US dollar on Friday, November 13, hovering near the psychologically important 160 level as rising US Treasury yields and expectations of further Federal Reserve monetary tightening supported the greenback.

The USD/JPY pair traded around 159.90 during the morning session at 08:09 GMT showing the Japanese currency struggling to recover from its recent losses.

The yen briefly weakened to 160.03 per dollar earlier, crossing the closely watched threshold for the first time since September, while heading for a weekly decline of approximately 0.9%.

Japan renews intervention warnings

Japanese Finance Minister Satsuki Katayama warned on Friday that authorities would respond appropriately to excessive currency volatility, describing recent foreign exchange movements as rapid and one-sided.

Her remarks followed similar warnings from Japan's top currency diplomat, Atsushi Mimura, who reminded investors of the government's previous interventions.

Japan spent a record 15.4 trillion yen, equivalent to approximately $96.5 billion, supporting its currency between July 30 and August 3, after the yen weakened toward a four-decade low near 164 per dollar.

Fed expectations support dollar

The dollar remained near a 19-month high as investors increased bets on another Federal Reserve interest rate increase in December.

The yield on two-year US Treasury securities climbed approximately 34 basis points over two sessions, reaching 4.86%, strengthening the dollar's interest-rate advantage over the yen.

Meanwhile, expectations of further Bank of Japan monetary tightening have provided limited support for the Japanese currency.

Investors are also monitoring developments in the Middle East, where elevated energy prices have reinforced concerns about persistent US inflation.

The yen's immediate direction remains closely tied to US bond yields and intervention risks, with sustained trading above 160 potentially increasing pressure on Japanese authorities to act.