Yen Hits 160 Mark, Tokyo Prepares for Big Bank Talk

The Japanese currency slipped past the 160‑dollar level, a threshold that once triggered government action. This drop happened after the yen lost gains it had earned from a huge buying spree by Tokyo last month. Finance Minister Satsuki Katayama told reporters that the government can act on foreign‑exchange moves whenever needed. Her words came as the Bank of Japan’s governor, Kazuo Ueda, was set to speak later that day. Ueda is expected to stay open about a possible June rate hike, but he will also touch on the uncertain situation in the Middle East. Experts think his remarks may not give traders a clear direction for the yen or the dollar.The real test is whether Prime Minister Sanae Takaichi will support any further tightening by the central bank. Katayama said she and Ueda had “very constructive discussions” in a recent meeting, hinting at close cooperation. Japan has spent about 11. 7 trillion yen since April to help the yen, a record monthly effort. The currency fell to a near two‑year low of 160. 725 on April 30, before briefly strengthening after intervention. Now the yen is weakening again, raising expectations that Tokyo may step in once more to defend it. Analysts say the chance of intervention rises sharply if the yen hits 162 or more.