The yen temporarily fell to the ¥160 level per dollar, its weakest level in 2 months. Expectations of a rise in US CPI and an accelerated pace of Federal Reserve rate hikes moved the market, raising concerns about possible intervention.
The yen temporarily fell to the ¥160 level per dollar, its weakest level in about 2 months. The move is believed to have been influenced by trading in the New York market on the 12th, raising concerns about its impact on import prices.
The US Consumer Price Index came in above market expectations, strengthening expectations that the Federal Reserve would accelerate its pace of rate hikes and adding to downward pressure on the yen. Attention is focused on future foreign-exchange movements.
Finance Minister Katayama (片山財務大臣) said current market movements had been "one-sided and excessively rapid," and indicated that the government would coordinate closely with the US Treasury and respond appropriately. Market participants are wary of possible additional intervention if the yen remains near ¥160.
The yen's depreciation is expected to push up inflation through higher import prices, and attention remains focused on future foreign-exchange movements.