Yen breaches 160 against dollar, raising intervention concerns

Japan spent nearly $100 billion defending the yen. It lasted about a month. The Japanese yen weakened past 160 per dollar on August 28, touching 160.20, a level not seen since late July. The move is more than a round-number milestone. It signals that one of the most expensive currency defense operations in modern history may be running out of road. How we got here The yen’s slide past 160 came on the back of comments from Federal Reserve Chairman Kevin Warsh, which lifted the dollar broadly and erased more than half the ground Japan had purchased through intervention. That phrase deserves unpacking: Japan literally bought ground. From July 30 to August 26, the Ministry of Finance deployed a record 15.39 trillion yen, roughly $96.5 billion, to prop up the currency. The crown jewel of that effort was a joint US-Japan operation on July 31, the first coordinated yen-buying move between the two governments since 1998. US Treasury Secretary Scott Bessent had signaled support for coordinated action against excessive currency volatility, giving Japan a powerful co-signer for its market defense. Why 160 is the number everyone watches For the yen specifically, 160 has a track record. Japanes...