Yen weakens past 160 per dollar after Kevin Warsh signal
The Japanese yen just weakened past the 160-per-dollar mark, wiping out more than one-half of the gains from July's rare U.S.-Japan team-up to boost its value.
This slide happened after Federal Reserve Chairman Kevin Warsh signaled he's staying tough on inflation, which has pushed up the dollar and put extra pressure on the yen.
Mid-160s yen could trigger intervention
Japan's interest rates, rising oil prices, and the nation's heavy debt burden are all weighing down the yen, especially with US rates expected to rise.
With a Bank of Japan meeting coming up and markets betting there's an 80% chance of a rate hike, everyone's watching closely.
Analysts say if the yen drops into the mid-160s, another intervention could be on the table.
For now, some investors are still taking risks with "carry trades," showing currency swings aren't going away anytime soon.