FX.co ★ Japanese Yen Approaches 160 Threshold

The Japanese yen hovered perilously close to the 160-per-dollar level on Friday, pressured by mounting uncertainty over the Bank of Japan’s policy path. The BOJ has hinted at a possible rate hike this month but faces growing questions about whether it will offer clear forward guidance before its April 28 meeting. Under Governor Kazuo Ueda, the bank has rarely left policy unchanged when markets were expecting action. Currently, traders are pricing in roughly a 70% probability of a rate increase, raising the risk that a decision to hold could unsettle global markets already on edge over tensions in the Middle East.

Adding to the strain, Finance Minister Satsuki Katayama highlighted an uptick in speculative activity in both currency and crude oil markets, linking the heightened volatility to US President Donald Trump’s renewed threats against Iranian infrastructure. She cautioned that the government stands ready to take bold steps if market disruptions continue. Despite its recent slide, the yen is still on track to post a gain for the week.