Yen Nears 160 Per Dollar, Japanese Stocks Fall Ahead of BOJ

Investors are on alert for the yen’s potential breach of 160 against the dollar, while Japanese stocks and government bond futures declined, ahead of the Bank of Japan’s rate decision announcement on Thursday.

Japan’s currency dropped as much as 0.6% to 159.90, its weakest level since July 2024, after Federal Reserve Chair Jerome Powell said the US central bank won’t cut interest rates again until inflation resumes cooling. Oil also rose after Iran and Israel traded strikes on key energy facilities in Middle East.