Japan yen hits 160 per dollar, sparking BOJ hike calls and intervention warnings

The Japanese yen briefly reached the psychologically important 160 per‑dollar level, the first time since April 30, prompting fresh warnings from Finance Minister Satsuki Katayama. Katayama said the authorities would "respond appropriately at any time" and highlighted oil‑market volatility as a factor that could trigger action.

Bank of Japan Governor Kazuo Ueda is set to speak, with markets expecting a June rate hike and looking for clear guidance on the policy path. Sumitomo Mitsui Financial Group’s global markets chief Arihiro Nagata urged the BOJ to signal a clear normalisation trajectory after the anticipated hike, saying that a transparent path would limit further long‑term rate pressure.

Japan has spent about 11.7 trillion yen on yen‑support operations since April, the largest monthly intervention round on record. The finance ministry confirmed close coordination with the United States on foreign‑exchange monitoring. Analysts note that the ongoing war in the Middle East adds inflationary risk, fueling expectations of further tightening.