FX.co ★ Yen Rises on Intervention Fears

The Japanese yen strengthened beyond 159.5 per dollar on Monday, partially reversing last week’s declines amid concern that a break above the key 160 level could trigger foreign exchange intervention by authorities. Finance Minister Satsuki Katayama said the government is watching currency movements closely and stands ready to take robust action if necessary.

The yen had weakened for four consecutive weeks as the conflict involving Iran and surging oil prices pressured Japan’s oil‑importing economy. Markets are also speculating that the United States will soon unveil a coalition of countries to escort ships through the Strait of Hormuz. However, a senior Japanese official noted that the bar remains “extremely high” for Tokyo to deploy warships to help safeguard the vital shipping route.

Meanwhile, the Bank of Japan is widely expected to leave its policy rate unchanged this week, reflecting elevated uncertainty over how the Iran conflict will affect the domestic economy.