Yen-Dollar Exchange Rate Nears 160 Yen... Japan "Ready for 24-Hour Intervention"

As the value of the yen declines, the yen-dollar exchange rate is approaching the 160 yen mark on the 24th.

At around 11 a.m. that day, the yen-dollar exchange rate was moving around 159.7 yen. During the session, it rose to as high as 159.9 yen. An increase in the yen-dollar exchange rate indicates a decline in the value of the yen.

[Image source=Yonhap News]

This is the lowest level in about two months since April 29. At that time, the yen-dollar exchange rate surpassed the 160 yen mark for the first time in 34 years since April 1990.

The Nihon Keizai Shimbun (Nikkei) analyzed that the preliminary June Purchasing Managers' Index (PMI) from S&P Global in the U.S. recorded its highest level in 26 months, spreading the perception that the U.S. economy is solid, which led to increased yen selling and dollar buying movements focusing on the U.S.-Japan interest rate differential.

Japan's foreign exchange authorities made remarks early in the morning suggesting market intervention. Masato Kanda, Financial Bureau Director of the Ministry of Finance, stated, "If there is excessive fluctuation based on speculation, we will act appropriately."

When asked about the readiness for market intervention, he said, "We are prepared 24 hours a day at any time," adding, "(If the exchange rate) moves too much, it adversely affects economic activities." He did not answer whether the current exchange rate level is excessive.