Tokyo, Japan – The yen experienced a sharp drop below the crucial ¥160 level against the dollar, marking a 34-year low and sparking speculation about potential intervention by Japanese authorities in the coming days.

Following the Bank of Japan’s decision to keep rates unchanged last Friday, the yen continued its decline, breaching the ¥158 mark. Analysts anticipated heightened volatility on Monday, a national holiday in Japan, with low-liquidity centers in Korea, Australia, and Singapore contributing to the fluctuations.

Traders suggested that any intervention from the Japanese authorities would likely occur during London trading hours when market liquidity is at its peak. A trader based in Hong Kong noted that officials from the Japanese Ministry of Finance have been advised to remain vigilant and ready for action, even on holidays.

The weakening yen has raised concerns among investors and could potentially impact global markets. Analysts are closely monitoring the situation, anticipating further developments as trading resumes after the holiday. The currency’s continued downward trajectory may prompt Japan to take measures to stabilize its value and prevent further depreciation.

Market participants are bracing for potential intervention from Japanese authorities to curb the yen’s decline, with the situation expected to unfold in the coming days. The yen’s persistent slide against the dollar has underscored the challenges facing Japan’s economy and the broader implications for international trade and finance.

As investors await further updates, the Japanese government is closely monitoring the situation and preparing to take action if necessary. The yen’s volatility in international markets underscores the interconnected nature of the global economy and the impact of currency fluctuations on various sectors. The developments in Japan could have far-reaching consequences, influencing market trends and investor sentiment in the days ahead.