Markets
Yen Touches 160 Per Dollar as Tokyo Warns of Action and Rising US Yields Keep Pressure on the Currency
Image: PIX1861 via Pixabay
Japan spent 15.4 trillion yen defending the currency after July's four-decade low, and markets expect a Bank of Japan hike in December.
By Emmanuel Cruz ·
The Japanese yen weakened past 160 per dollar overnight into Friday, Nov. 13, its first time at that level since early September, and Tokyo responded with fresh warnings, Reuters reported [1]. The currency's weakest point on Thursday was 160.30, the report said, and chart watchers pointed to 160.39, the early-September high, as the next marker [1].
Finance Minister Satsuki Katayama warned that Tokyo was ready to act again, according to Reuters [1]. InvestingLive, which published her remarks on Friday, reported that she described currency moves as "one-sided" and "rapid," said she would stay in contact with the U.S. Treasury on an appropriate response, and declined to comment on intervention specifically [2]. Atsushi Mimura, Japan's top currency diplomat, said it was too early to forget this summer's intervention, Reuters reported [1].
That intervention was large. Japan spent 15.4 trillion yen ($96.5 billion) defending the currency after it fell to 163.99 per dollar, a four-decade low, in late July [1]. The U.S. Treasury also bought yen in July, its first yen-buying operation since 1998, according to InvestingLive [2]. Reuters said Treasury Secretary Scott Bessent had hinted that joint action could reach $10 billion, but a New York Fed report showed the American portion was about $497 million of euro sales to buy yen [1]. Shuhei Uehara, an analyst at the Gaitame.com Research Institute, said the U.S. action was small as expected and showed little seriousness about lifting the yen [1].
The main driver now sits outside Japan. The dollar hit a 19-month high against major currencies as U.S. Treasury yields rose on bets of a larger Federal Reserve rate hike next month, Reuters said [1]. "Treasury yields right now are seen as a major reason the yen is being sold," said Bart Wakabayashi, a branch manager at State Street in Tokyo [1].
The weak yen also carries domestic costs. Reuters said it raises fuel and import prices and squeezes households, adding political pressure on Prime Minister Sanae Takaichi's government [1]. InvestingLive reported that the government is bringing forward winter utility subsidies, funded from reserve funds [2].
The Bank of Japan is the other half of the story. It raised rates in June and September and is widely expected to hike again in December, according to InvestingLive [2]. In a Reuters poll conducted Oct. 13-19, 54 of 78 economists expected the central bank to lift its rate to 1.5% this quarter, and of the 54 who named a month, about 80% chose December [3]. Reuters has reported that a weak yen adds pressure on the Bank of Japan to keep tightening and narrow the interest-rate gap with other central banks [1]. The poll described Japanese rates as the highest in 31 years [3].
For markets, the key question is whether verbal warnings are enough. Some analysts quoted by Reuters doubt the deterrent value of a limited U.S. role, and one, Akira Moroga of Aozora Bank, said Japan was likely to step in even without American help [1]. The next tests are the 160.39 level, any further comments from Katayama and Mimura, the path of Treasury yields, and the Fed and Bank of Japan decisions expected next month.
Sources:
[1] Reuters (via 104.9 The Wolf), "Limited US role in Japan intervention undermines deterrent as yen touches 160", November 13, 2026. https://www.1049thewolf.com/2026/11/12/japans-finance-minister-vows-action-as-yen-breaches-160-threshold/
[2] investingLive, "Japan's Katayama warns of one-sided yen moves near 160, will coordinate with US Treasury", November 13, 2026. https://investinglive.com/news/japan-s-katayama-warns-of-one-sided-yen-moves-near-160-will-coordinate-with-us-treasury
[3] Reuters (via Yahoo Finance), "BOJ to raise rates to 1.50% in December, sticking to quarterly pace: Reuters poll", October 21, 2026. https://finance.yahoo.com/economy/policy/articles/boj-raise-rates-1-50-220616512.html
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.