The Japanese yen on Wednesday rose to an 11-month high of 149.71 yen per dollar, just below the 33-year high of 151.95 posted last October. According to former top Japanese currency official Eisuke Sakakibara, the Japanese government may step into foreign exchange markets if the yen goes beyond 150 against the dollar, with officials likely to get concerned if it reaches 155.
Sakakibara, also known as “Mr Yen,” oversaw over a dozen currency interventions during his stint as Japan’s vice finance minister for international affairs between 1997 and 1999. Sakakibara believes the Japanese government will try to ride out the yen weakness without intervening as it waits for a change in the policy direction of the Federal Reserve. The yen has continued to weaken as the dollar gains strength on expectations of U.S. interest rates staying higher for longer.
