Yen Dips to Weakest Since 2008 Against Euro, Eyes 145 Per Dollar

The yen fell to the weakest against the euro since 2008 and neared a key level against the dollar, putting traders on guard for jawboning from Japanese officials, ahead of the release of potentially market-moving US inflation data Thursday.

(Bloomberg) — The yen fell to the weakest against the euro since 2008 and neared a key level against the dollar, putting traders on guard for jawboning from Japanese officials, ahead of the release of potentially market-moving US inflation data Thursday.

The currency fell as much as 0.6% versus the euro to 158.65 and 0.3% against the greenback to 144.11. That put the closely watched 145 per dollar level on the radar if losses are extended, ahead of any reaction to the US consumer price figures. The last time it reached that mark was at the end of June.

Japanese authorities stepped in to support the yen last year for the first time since 1998 after the currency tumbled toward 146. That sent the currency on a rally to below 130 at the start of the year, before it resumed its weakening trend. Japan is the only nation that maintains a negative benchmark interest rate in the world.

Read more: Yen Challenge for BOJ Persists Even After Ueda’s Rare FX Warning

A recent policy adjustment by the Bank of Japan, which allowed benchmark 10-year rates to move up toward 1%, has provided little support to the currency.

–With assistance from Naomi Tajitsu.

More stories like this are available on bloomberg.com