USD/JPY rises beyond the key 160.00 level, boosting intervention risks
The US Dollar (USD) appreciates against the Japanese Yen (JPY) for the third consecutive day on Thursday, to hit 21-month highs at 160.73, levels that urged Japanese authorities to act in the past, since the 160.00 round mark is considered a line in the sand for Tokyo. The US Dollar is outperforming its major currency peers on Thursday, boosted by a hawkish tilt at Wednesdays US Federal Reserve (Fed) monetary policy meeting and fears of a prolonged closure of the Strait of Hormuz, as attempts to find a negotiated end to the US-Iran war are failing. The Fed held its monetary policy unchanged as expected on Wednesday, but three policymakers opposed the “easing bias” language in the banks statement, while another one dissented in favour of a rate cut. The overall outcome of the voting has prompted investors to price out any further rate cuts. US Treasury yields jumped in the aftermath of the meeting, providing additional support to the USD. Japan‘s Finance Minister, Satsuki Katayama, reiterated Tokyo’s willingness to take “decisive action” against excessive Yen weakness earlier this week, and the Bank of Japan (BoJ) assured that it will continue hiking rates as soon as geopolitical uncertainty ebbs. The Yen, however, remains on