The Japanese yen traded around 159.40 per dollar, keeping the currency within reach of the 160 threshold that markets treat as the likely trigger for official action.
The yen holds near a 40-year low against the dollar. That persistent weakness has fueled expectations for a government response.
The depreciation is driven by the rate differential between the Federal Reserve and the Bank of Japan — the Fed holding rates elevated while the BOJ maintains an accommodative stance. Until that gap narrows, the yen's structural drag remains intact.
Prime Minister Sanae Takaichi's government has said it supports a rate hike from the Bank of Japan, signaling official concern over the yen's rapid decline.
A breach of 160 could prompt Japanese authorities to enter currency markets directly, buying yen to stabilize the exchange rate. But the lasting effect of any intervention depends on shifts in underlying rate differentials — a factor Tokyo cannot control unilaterally.
