The Japanese yen weakened toward 159.5 per dollar on Monday, nearing the key 160 level that has previously triggered market intervention. Top currency chief Atsushi Mimura said the government is prepared to take all necessary steps to respond to foreign exchange moves. Mimura also highlighted the impact of the prolonged Middle East conflict and rising oil prices on the yen, noting that currency fluctuations affect people’s daily lives. The yen failed to hold gains from last week, when the Bank of Japan kept its policy rate steady but signaled a bias toward tighter monetary policy to counter inflationary pressures from surging oil prices. Board member Hajime Takata dissented, recommending a 25 basis point hike to 1% for a second consecutive meeting. BOJ Governor Kazuo Ueda added that a rate increase remains possible if the economic slowdown from the Iran conflict proves temporary.
