Japanese yen dips below 160 per dollar, stoking intervention fears
Business
The Japanese yen is hovering just below the 160-per-dollar mark, a point that's made markets nervous about possible government action.
On Tuesday, the yen dipped to 159.39 before closing at 159.28, a level which has contained yen weakness in the past.
Analysts blame US rates fiscal geopolitics
Analysts say the yen's slide comes from tough economic challenges: higher US interest rates compared to Japan, concerns over Japan's fiscal outlook, and geopolitical uncertainty.
Masayuki Nakajima, senior strategist at Mizuho Bank, noted that if the yen breaks past 160, expectations for intervention will grow.
As Bank of America's Alex Cohen put it, "Barring further policy action, the yen will likely struggle in this environment."