The yen broke ?161.96 to the dollar overnight and traded at levels not seen since December 1986.?
For the past week, the currency has been teetering on the edge of four-decade lows and well within the range in which analysts expect intervention.
Finance Minister Satsuki Katayama has repeatedly warned that the government stands ready to take ¡°decisive action.¡±
While intervention could lift the yen to some extent in the short term, some investors are betting that it will be difficult to stop the currency from weakening.
This?comes as expectations for U.S. rate increases have grown while the Bank of Japan¡¯s rate path is already seen as priced in.
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