The yen exchange rate fell against the dollar in the New York market on 28–29 August, briefly reaching the ¥160 range, prompting growing views that the effect of coordinated Japan-US intervention had begun to fade after about four weeks.
In the New York foreign exchange market, the yen weakened against the dollar, briefly reaching ¥1 = ¥160.20. It entered the ¥160 range for the first time since coordinated Japan-US yen-buying intervention.
The yen exchange rate had remained around ¥160 since the intervention at the end of July, but the latest move has prompted claims that the effect of the intervention began to fade after about four weeks. Going forward, attention will focus on the Federal Reserve's direction and the outlook for US interest rates.
Related reports indicated that a speech by the Federal Reserve chair pointed to the possibility of additional measures if elevated prices persist, while leaving room for further rate hikes. Some commentary also suggested that pressure for a weaker yen and stronger dollar could continue.
At the same time, multiple reports from the cited sources are available, and there are slight differences in the timing and figures reported by each organization. Market participants are monitoring developments in foreign-exchange policy and the outlook for US interest rates.