Japanese yen falls past 160 per dollar, prompting fresh intervention concerns

The Japanese yen has weakened by more than 2% this month, pushing the USD/JPY pair above the historic 160‑level that the Ministry of Finance traditionally defends. Record interventions earlier in the year cost roughly $73‑$74 billion, yet the currency remains under pressure as the Federal Reserve signals a higher probability of a rate hike later in 2026.

The Bank of Japan is expected to raise its short‑term policy rate by 25 basis points to 1.00% in mid‑June, while likely pausing its large‑scale bond‑purchase taper. The widening US‑Japan yield spread and continued hawkish Fed stance add structural upward pressure on the dollar, keeping the yen near the intervention zone of 160.40‑160.70, where officials previously issued a “final verbal warning” to speculators.