Yen Breaks 160 per Dollar, Japan Signals "Firm Action"

JAKARTA - The yen exchange rate fell to its weakest point since July 2024. The Japanese government has begun to give a strong signal: intervention steps are getting closer.

Japanese Finance Minister Satsuki Katayama said on Thursday that the time to take "firm action" against the weakening of the yen was approaching. The statement was made when the Japanese currency briefly touched the range of 160.70 per US dollar.

"The time for decisive action, which I mentioned earlier, is now really getting closer," Katayama told reporters, as quoted by Kyodo News, Thursday, April 30.

This weakening occurred amid rising tensions in the Middle East. In an uncertain global situation, the US dollar is again being hunted by investors as a safe asset.

As a result, the yen continued to be pressured and moved at a level that has rarely been seen in recent years.

Katayama's statement reinforces the signal that the market has been waiting for. Whenever the Japanese government starts to mention "firm action", market participants usually associate it with the possibility of intervention in the foreign exchange market.

However, until now, no concrete steps have been announced. The government is still monitoring market movements and global dynamics that affect exchange rates.

With the yen position continuing to weaken, attention is now focused on the next step from the Japanese authorities - whether it is just a warning, or actually followed by action in the market.