The Japanese yen against the US dollar fell to its weakest level since July 2024.

The Japanese yen against the US dollar fell to its lowest level since July 2024, increasing the risk of official intervention to support the yen. On Wednesday, the yen against the US dollar briefly fell by 0.2% to 160.80, and fluctuated around 160.62 during early trading hours in Tokyo on Thursday. The yen's movement is propelled by the strong US dollar, as traders increase bets that the Federal Reserve will raise interest rates this year. "The Fed's meeting suggests a shift towards a hawkish policy," said Andrew Hazlett, a forex trader at Monex Inc. "This has boosted the dollar and pushed the yen to a level where intervention needs to be considered." Overnight index swaps indicate an 80% chance of the Bank of Japan taking action before the end of the year. A media survey shows that around 90% of 44 economists predict that the Bank of Japan will raise its benchmark interest rate before the December meeting.