Japan Threatens Currency Intervention as Yen Weakens, BOJ Governor Hints at Rate Increase

The Japanese government has issued a warning regarding possible foreign exchange intervention as the USD/JPY pair surpassed the 160 level, a key threshold for official action. This comes after a confirmed intervention in April to support the yen. Concurrently, Bank of Japan Governor Kazuo Ueda indicated a potential interest rate hike in June, aiming to address inflation fueled by energy price volatility.