Forget ¥160, traders see currency falling as far as ¥170 against the dollar

Traders say a slump of the yen as far as ¥170 per dollar is possible despite looming intervention risks.

by RUTH CARSON AND YUI HASEBE
June 25, 2024

The yen is at risk of sliding to levels last seen in 1986, with bearish traders unfazed by the specter of government intervention to bolster Japan’s embattled currency.

A slump as far as ¥170 per dollar — some ¥10 from current levels — is possible amid continued selling of the currency in favor of the higher-yielding greenback, according to Sumitomo Mitsui DS Asset Management and Mizuho Bank.

Investors see few catalysts right now, including potential yen purchases by Japan, that would be powerful enough to reverse the momentum that’s sent the yen down almost 12% this year. Market moves since early May underscore this point, with the yen pretty much back where it started following a record ¥9.8 trillion ($61.4 billion) foray into the market by the finance ministry.