The yen traded above ?160 to the dollar on Thursday, as uncertainties in the Middle East fueled safe-haven dollar buying and drove up energy prices.?
Brent crude oil futures broke $120 a barrel Wednesday after U.S. President Donald Trump reportedly instructed aides to prepare for an extended blockade of Iran.?
It last traded at these levels in 2022.
Higher crude oil prices tend to put pressure on the yen, as they contribute to a deterioration in the trade balance.
On Wednesday, the yen traded as high as ?160.44 to the dollar. It hasn't been this weak since July 2024.
If the yen stays around ?160 to the dollar or weakens further, some investors and traders could be on high alert for currency intervention, as they see that level as the red line for authorities.?
Finance Minister Satsuki Katayama has repeatedly issued verbal warnings to counter speculative moves.
Katayama has said her ministry is in constant communication with the U.S., and that Japan can take decisive action against speculative moves.
The Bank of Japan kept rates steady at a policy meeting that ended Tuesday as it continues to gauge the economic effects of the war in the Middle East.
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