Yen slips back below 160 per dollar after Fed chair's hawkish remarks
The Japanese yen briefly dropped under 160 per U.S. dollar in New York, its weakest level since a joint yen-buying effort with the United States in late July, following a speech by Federal Reserve Chair Kevin Warsh.
In New York trading on Friday, the yen fell past the 160 per dollar mark for the first time since the coordinated intervention by Japan and the United States in late July. The move was triggered by remarks from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium, where he hinted that further rate hikes could be on the table if inflation remains stubborn. Warsh emphasized the need for confidence that underlying price pressures are moving toward the Fed's target at a sufficient pace.
Analysts noted that the yen’s recent weakness reflects the widening gap between U.S. and Japanese interest rates. The earlier yen-buying operation was the first joint market action by the two countries in 15 years.
Why it matters
The yen's drop signals how Fed policy cues can quickly affect currency markets and trade balances.
How this story developed
- Aug 24 New Fed chief faces market pressure at Jackson Hole amid inflation worries
- Aug 27 Warsh’s upcoming Jackson Hole address arrives amid $30 trillion of bond‑market selling pressure tied to inflation concerns and President Trump’s fiscal agenda.
- Aug 28 Global equity indices mostly advanced, led by tech stocks, as investors prepared for Warsh’s Jackson Hole speech.
- Aug 28 Kevin Warsh, chair of the Federal Reserve, begins his address at Jackson Hole with a joke about hiking and compares a “Kohn day” to a “Bernanke day.”
- Aug 28 Warsh indicated that further interest‑rate increases may be required this year.
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