Buoyant dollar pushes yen to within striking distance of 150

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Buoyant dollar pushes yen to within striking distance of 150
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The forecast of higher-for-longer US interest rates pushed the yen to its lowest level in 11 months.

Yen tumbled to an 11-month low at 149.74 per dollar during a quiet Asian session due to Australia’s holiday and China’s Golden Week.

The yen slid to a roughly 11-month low of 149.74 per dollar, as the Japanese currency continued its slow-but-steady decline toward the 150 mark, a level which some see as a line in the sand that would spur Japanese authorities to intervene in the currency market as they did last year. “They’re wary of tightening too early and squashing… a rise in inflation and growth,” said Jarrod Kerr, chief economist at Kiwibank. “They deserve to be cautious, though.”

The US dollar index, however, stood not too far from its recent 10-month high and was last at 106.24, after clocking its best quarterly performance in a year last month thanks to persistently hawkish Federal Reserve rhetoric.

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