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Yen’s Slump Toward 140 Reawakens Talk of Currency Intervention

  • Verbal intervention could start if yen approaches 140
  • Dollar-yen has climbed this month amid hawkish Fed commentary
Updated on

The slide in the yen back toward the key psychological 140 per-dollar level is reigniting chatter on the likelihood officials will intervene to support the Japanese currency.

With traders refocusing on Japan’s interest-rate gap with the rest of the world amid a chorus line of hawkish Federal Reserve commentary, the yen has tumbled close to 4% this month and traded around the 138.50 level Tuesday. That’s a hair’s breadth from a fresh 24-year low and the 140 level which some market watchers have flagged as key for policymakers.