The yen continues to weaken. In the New York foreign exchange market, the yen fell to the 160.60 yen range against the dollar, the lowest level in about 38 years.

The yen was approaching 160 yen, but after surpassing that level just after 6:30 p.m., it quickly weakened and is now trading at 160.50 yen per dollar.

There is a growing trend to sell yen and buy dollars due to the view that the interest rate gap between Japan and the United States will not narrow anytime soon.

As market expectations grow stronger that the government and the Bank of Japan will intervene in the market to buy yen in order to prevent the yen from weakening, Finance Ministry Vice-Minister Kanda said the following earlier:

Masato Kanda, Vice Minister of Finance, Ministry of Finance
“We are seriously concerned about the recent rapid depreciation of the yen, and are closely monitoring market trends with a high level of vigilance. We will take necessary measures against any excessive movements. We have been preparing (foreign currency intervention) for some time now.”

However, by repeating the same language as before and limiting intervention to “verbal service,” selling pressure intensified immediately after the remarks, and at one point the yen hit the 160.60 yen range on the New York foreign exchange market.

As the yen hits its weakest level in approximately 38 years, the market continues to see price movements that seem to test the seriousness of the government and the Bank of Japan as to when they will intervene.