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7h ago

Yen Hits 153 After Takaichi Win, With BOJ Path and 160 Intervention Line in Focus

Markets now watch for a BOJ rate move or possible currency action if the depreciation persists.

Examples of Japanese yen banknotes are displayed at a factory of the National Printing Bureau producing Bank of Japan notes at a media event about a new series of banknotes scheduled to be introduced in 2024, in Tokyo, Japan, November 21, 2022. REUTERS/Kim Kyung-Hoon
Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration
A man looks at an electronic board displaying sector performances related to Nikkei index outside a brokerage in Tokyo, Japan, May 13, 2025. REUTERS/Kim Kyung-Hoon
A man takes a photo of a board displaying the Japanese yen exchange rate against the U.S. dollar outside a brokerage in Tokyo, Japan September 7, 2022. REUTERS/Kim Kyung-Hoon

Overview

  • Japan’s currency is on track for its steepest weekly drop in a year, trading around 153 per dollar after Sanae Takaichi’s party leadership victory shifted rate expectations.
  • Former BOJ FX chief Atsushi Takeuchi said authorities may tolerate gradual weakness but could intervene if moves accelerate toward 160, as Finance Minister Katsunobu Kato issued fresh warnings on disorderly trading.
  • Former BOJ executive Kazuo Momma said persistent yen declines could bring a hike as early as the Oct. 29–30 meeting, while ex–deputy governor Masazumi Wakatabe cited weak data as a hurdle to raising rates this year.
  • BOJ Governor Kazuo Ueda has reiterated the bank’s legal independence and data-dependent stance, keeping open the option to continue raising still-low rates if forecasts hold.
  • Takuji Aida, an adviser to Takaichi’s policy circle, argued a weaker yen aids investment and said fiscal measures can cushion households, projecting the policy rate at 0.75% by January before a pause.