Yen struggles near 158 per dollar as intervention concerns grow ahead of US elections

The yen remained under pressure on Tuesday, November 3, trading close to 158 per dollar as investors weighed the prospect of further Bank of Japan tightening against the continued attraction of higher US interest rates.

Currency trading was subdued ahead of the US midterm elections, while uncertainty surrounding Washington's negotiations with Iran and volatile oil prices added to the challenges facing Japan's import-dependent economy.

Price overview

USD/JPY traded around 157.81 yen, leaving the Japanese currency little changed against the dollar.

EUR/JPY hovered near 176.50 yen, while GBP/JPY remained around 211.50 yen.

Bank of Japan keeps tightening expectations alive

The Bank of Japan held its benchmark interest rate at 1.25% last Friday, voting 8–1 to maintain its current policy.

Board member Hajime Takata favored an increase to 1.5%, reinforcing expectations that another rate hike could arrive in December.

However, the substantial interest rate differential between Japan and the United States continues to discourage sustained yen appreciation.

Tokyo maintains intervention warnings

Japanese Finance Minister Satsuki Katayama reiterated Monday that authorities remained prepared to respond to excessive currency fluctuations and speculative trading.

She also emphasized that Japan would maintain close coordination with Washington on foreign exchange policy regardless of the election outcome.

Oil prices complicate outlook

Crude prices rebounded modestly on Tuesday after Monday's sharp decline, as renewed military tensions threatened diplomatic efforts involving Iran.

Higher energy costs remain particularly problematic for Japan, which relies heavily on imported fuel.

Market outlook

The 158.00 level remains an immediate resistance point for USD/JPY, followed by 158.50, where intervention concerns could intensify.

Support stands near 157.50, with further downside toward 157.00 possible if US Treasury yields retreat or investors reduce exposure to riskier assets.