Yen nears 160 per dollar again as Tokyo warns on intervention

The Japanese yen weakened on Friday and came close to 160 per dollar, prompting fresh intervention threats from Tokyo. The USD/JPY pair, which measures the number of yen needed to buy one dollar, rose 0.06% to 159.94 yen and had briefly crossed 160 yen on Thursday.

Tokyo steps up warnings

Japanese Finance Minister Satsuki Katayama warned on Friday against "one-sided" moves in foreign exchange markets and vowed to "respond appropriately."

Her remarks followed similar comments from top currency diplomat Atsushi Mimura on Thursday. Mimura said it was "too early to forget" intervention earlier this year.

First breach since September

The yen's overnight drop saw it cross 160 for the first time since early September. The currency's previous breach of that level sparked an unprecedented joint intervention by Tokyo and Washington. That action saw the USD/JPY pair fall as low as 150 yen.

Rate gap keeps pressure on yen

The yen was battered by a stronger dollar this week. Traders increased bets that the Federal Reserve will hike interest rates in December. That pointed to a continued wide gulf between U.S. and Japanese rates, even as the Bank of Japan opened the door to more rate hikes in the coming months.

The BOJ is also expected to raise rates in December, after it effectively declared victory against deflation during its October meeting.