Yen Sinks Closer to 1998 Intervention Level With Traders on Edge
- Decline came on heels of BOJ decision to keep policy on hold
- Losses may extend during Japan’s holiday on Friday: Sumitomo
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The yen briefly tumbled past the key level of 145 per dollar after the Bank of Japan kept policy settings on hold, bringing it closer to a threshold that may invite intervention by the authorities.
Japan’s currency slid as much as 0.9% to 145.37, the lowest since August 1998, before trading about 0.6% weaker at 12.30 p.m. local time. The BOJ’s policy decision widens the divergence with the Federal Reserve which delivered its fifth interest-rate hike this year on Wednesday and signaled more tightening to tame inflation.