Yen Approaches 160 Intervention Warning Line

On Wednesday (August 12), at the New York close, the yen weakened again, currently trading at 159.48, further approaching the key psychological barrier of 160.

Bank of America strategists warned that although US CPI data has temporarily eased some pressure, the risk of intervention by Japanese authorities remains ever-present, with potential moves to support the currency possible at any time.

The New Zealand dollar was the worst performer among G10 currencies, falling 0.4% against the US dollar. Although New Zealand Prime Minister Christopher Luxon has temporarily weathered the crisis of a leadership challenge within his party, political turmoil ahead of the general election continues to weigh on the Kiwi.

The euro fell 0.2% against the US dollar to 1.1523; the pound sterling dropped 0.1% to 1.3491; and the Australian dollar remained largely flat around 0.7063 against the US dollar.