Yen falls to 161 per dollar, reaching 1‑year low amid Fed rate‑hike bets

The Japanese yen slipped to the 161‑per‑dollar level, its weakest since a year‑and‑eleven months, as traders priced in expectations of further U.S. Federal Reserve rate hikes. The move widened the U.S.–Japan interest‑rate gap and revived concerns of another government or Bank of Japan foreign‑exchange intervention.

In late April, authorities intervened when the yen hovered around 160.7 per dollar, temporarily lifting it to the 155 range, but the recent sell‑off erased those gains. Market participants warn that a break of the 161.95 threshold – a level not seen since 1986 – could trigger a new intervention, though analysts say any action may have limited impact on the yen’s longer‑term downtrend. Forecasts suggest the yen could test the 162 mark in the coming weeks.