Yen at 11-Month Low Against Dollar Amid Intervention Risk

The Japanese yen reached an 11-month low against the US dollar and a 10-month low against a basket of currencies following the Federal Reserve's indication of potential interest rate hikes. The Bank of Japan's decision to maintain ultra-low interest rates and its commitment to supporting the economy also contributed to the yen's decline. The widening gap between US and Japanese bond yields further weakened the yen. Market watchers are closely monitoring the 150 level, which could trigger forex intervention from Japanese authorities. The euro also dropped against the dollar due to expectations that the European Central Bank will not raise rates. Traders are focusing on potential problem areas, including housing markets in Australia, Canada, and New Zealand.