Key takeaways Japanese yen approaches 160 as dollar strengthens sharply Tokyo warns traders after record ¥15.4 trillion intervention Rising US yields increase pressure on Japan's currency The
The Japanese yen weakened toward 160 per US dollar on Thursday, November 12, prompting fresh intervention warnings from Tokyo just three months after authorities spent a record ¥15.4 trillion defending the currency.
USD/JPY climbed to 159.94, its highest level in more than two months, as stronger US inflation and growing Federal Reserve rate hike expectations boosted the dollar. The Bank of Japan's official exchange-rate data recorded a Thursday trading range of 159.49–159.93 during Tokyo hours.
Japan's top currency diplomat, Atsushi Mimura, warned that recent exchange-rate movements had become excessively rapid, reminding investors of the government's willingness to intervene.
Japan's ¥15.4 Trillion Intervention Failed to Deliver Lasting Yen StrengthAccording to official Ministry of Finance records published November 9, Japan spent ¥15.3993 trillion purchasing yen and selling dollars across three sessions between July 30 and August 3.
The largest operation came on July 30, when authorities deployed approximately ¥7.98 trillion. Another ¥5.55 trillion followed on July 31, before a final ¥1.87 trillion intervention on August 3.
The extraordinary spending helped reverse an earlier yen collapse toward 164, when the currency reached its weakest levels in approximately four decades.
Japan also conducted a rare joint intervention with Washington, the first coordinated effort to support the yen since 1998.
Although those operations temporarily strengthened the currency toward 155 per dollar, much of the recovery has disappeared.
The intervention also placed Japan's foreign reserves under scrutiny. Earlier questions about US Treasury involvement highlighted the financial resources required to defend a currency against persistent international market pressures.
<iframe src=”https://widgets.coincodex.com/w/32fb5d90-a4cf-424a-b3d2-523932ae70ea?site=coinpaper&mode=light” width=”100%” height=”420” frameborder=”0” referrerpolicy=”no-referrer-when-downgrade” style=”border:0;background:transparent;border-radius:0px;”></iframe>Why Is the Japanese Yen Falling Again?The yen's latest decline reflects the widening monetary-policy divide between the United States and Japan.
Markets assigned roughly a 91% probability to a December Federal Reserve rate increase following stronger-than-expected US inflation. Meanwhile, the 10-year Treasury yield climbed above 5%, reinforcing demand for dollar-denominated assets.
Higher US Treasury yields increase the relative appeal of holding dollars, while Japan's lower interest rates continue supporting yen-funded carry trades.
Japan also faces domestic inflation pressure. The yen-denominated import price index increased 24.8% year over year in October, making the currency's depreciation increasingly expensive for consumers and businesses.
The situation contrasts with February's yen recovery below 155, when expectations of stronger Bank of Japan tightening helped support the currency.
USD/JPY Forecast: Will Japan Intervene Above 160?The 160 level has become an important psychological threshold, although Japanese authorities have not identified it as an automatic intervention trigger.
A sustained move above 160 could intensify pressure on Tokyo, particularly if yen weakness continues increasing import costs and inflation.
However, a successful defense may require more than currency purchases. Earlier intervention efforts demonstrated how quickly the exchange rate can rebound once the initial market disruption fades.
