Yen Hits 160 Again as Dollar Surges on Gulf Tensions, Japan Warns of Intervention
By Aboki Forex —
LONDON – The Japanese yen slipped back to the critical 160 per dollar level on Wednesday, driven by renewed dollar strength as fresh hostilities in the Gulf boosted demand for the greenback. The U.S. said Iran launched ballistic missiles toward regional neighbours, but all failed to hit targets. In response, U.S. forces conducted strikes on Qeshm Island. Diplomatic talks between Iran and the United States remain deadlocked, keeping market sentiment cautious.
The dollar has rallied during past flare-ups of the conflict, supported by safe-haven buying and the U.S.'s lower sensitivity to energy price shocks. The yen tends to weaken when oil prices rise, given Japan's heavy reliance on imported energy. On Wednesday, the yen fell to the closely watched 160 level, where Japanese authorities have previously intervened. This erased gains made after Tokyo's 11.7 trillion yen ($73 billion) intervention a month ago to support the struggling currency.
Prime Minister Sanae Takaichi later said authorities stood ready to respond to exchange-rate moves as needed. Following her comments, the dollar eased slightly to 159.66 yen. Traders remain on alert for possible intervention by Japan's central bank or finance ministry.