Yen Slides to Two-Decade Low, Reigniting Focus on Intervention
- Japan’s currency is the worst performer in G-10 this year
- Increasingly hawkish Federal Reserve weighing on yen
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The yen extended a twenty-year low against the dollar Tuesday, weighed down by the widening gap between yields in Japan and the US, stoking speculation over potential intervention.
The currency fell as much as 0.8% to 132.96 per dollar -- the lowest since April 2002 -- with benchmark Treasury yields trading above the closely-watched 3% level. It slid to a seven-year low against the euro and the Australian dollar, heaping pressure on a Japanese government facing a backlash over rising prices.