Yen Slides to 159.65, Nears Intervention Zone as Tokyo Pledges Decisive Action

The yen weakened to 159.65 per dollar on May 28, 2026, approaching the 160 line that prompted an estimated $63 billion in Japanese intervention in April and May. Finance Minister Satsuki Katayama repeated that officials are ready to take “decisive action,” with the Ministry of Finance set to disclose intervention totals on May 29. Japan holds about $1 trillion in foreign reserves, but analysts say fully deploying them is impractical due to the need for U.S. cooperation and the risk of losing free-floating currency status under IMF rules. Still, Aozora Bank’s Akira Moroga said curbing excessive volatility takes priority, and the government would not be deterred by classification concerns. The yen has been under pressure from the Bank of Japan’s cautious rate hikes, soaring energy import costs, and speculative bets. Market participants expect the next intervention before 162 yen per dollar, with buy orders for dollars clustered in the 155-157 zone. A domestic bank dealer said the 160 line is a level the government “will want to defend at all costs.”