08.06.202602:10:22UTC+00Yen Weakens Past Key 160 per Dollar Level

The Japanese yen weakened past the 160-per-dollar level on Monday, breaching a threshold widely viewed by markets as a potential trigger for fresh currency intervention by Japanese authorities. The yen remained under pressure as the US dollar strengthened, supported by a stronger-than-expected US jobs report that reinforced expectations the Federal Reserve could raise interest rates later this year.

Heightened tensions in the Middle East also increased demand for the greenback after Iran launched several rounds of missiles toward Israel. Meanwhile, data released on Friday showed that Japan’s foreign reserves logged a record monthly decline in May, as the government sold foreign assets to finance its largest-ever currency intervention the previous month.

On the monetary policy front, the Bank of Japan is widely expected to raise interest rates later this month, as policymakers grapple with persistent inflationary pressures fueled by higher energy costs.