Yen Slides Near ¥160, Triggering Intervention Warnings

The Japanese yen weakened sharply toward the key level of ¥160 per U.S. dollar on November 12, 2026, heightening the risk of fresh official intervention in currency markets. USD/JPY climbed to its highest level in more than two months, as the dollar strengthened on the back of hotter-than-expected U.S. inflation and renewed expectations of further Federal Reserve rate hikes.

During Tokyo trading hours, the Bank of Japan’s official data recorded a USD/JPY (USDJPY) range between 159.49 and 159.93. After the initial spike, the yen stabilized somewhat, edging about 0.1% higher to around 159.63 per dollar, but remained close to the psychologically important 160 threshold that has drawn increased attention from policymakers and traders.

Japan’s top currency diplomat, Atsushi Mimura, cautioned that it is too early for markets to forget this summer’s foreign-exchange intervention as the yen again approaches 160 per dollar. He said he has a strong impression that recent currency moves have been "too fast" and characterized the latest exchange-rate shifts as excessively rapid.

Government officials have reiterated that an undervalued yen is problematic. They also emphasized a commitment to maintaining orderly foreign-exchange markets and to keeping close communication with the U.S. Treasury through the finance ministry as volatility in the yen persists.

The renewed weakness comes only a few months after large-scale yen-buying operations. Official Ministry of Finance records show that Japan spent ¥15.3993 trillion between July 30 and August 3 purchasing yen and selling dollars to support the currency. Those interventions were launched as the yen slid toward 164 per dollar, its weakest level in roughly four decades.

The extraordinary spending helped reverse the earlier collapse and temporarily strengthened the yen toward 155 per dollar. Authorities also undertook a rare joint intervention with the United States, the first coordinated effort to support the yen since 1998, underscoring the severity of the earlier depreciation episode.

The latest decline in the yen reflects a widening policy gap between the United States and Japan. Stronger U.S. inflation data boosted expectations that the Federal Reserve may need to raise interest rates further, lifting the 10-year U.S. Treasury yield above 5% and increasing demand for dollar-denominated assets.

By contrast, Japan’s lower interest rates continue to support yen-funded carry trades and leave the currency vulnerable when U.S. yields rise. The weaker yen is also feeding domestic price pressures: the yen-based import price index rose 24.8% in October from a year earlier, highlighting how currency depreciation is increasing costs for Japanese consumers and businesses and adding to the urgency of policymakers’ intervention warnings.