Market News
Yen falls to 160 level, prompting warnings from Japanese officials - REUTERS
By Samuel Indyk and Rae Wee
LONDON, June 3 (Reuters) - Renewed strength in the dollar pushed the Japanese yen back to the key 160 level on Wednesday, prompting verbal warnings from authorities and keeping traders on alert for intervention, as fresh Gulf hostilities bolstered demand for the greenback.
The U.S. said Iran launched ballistic missiles toward regional neighbours but all failed to hit targets, and that U.S. forces conducted strikes on Qeshm Island in response.
Diplomatic talks between Iran and the United States remain at a stalemate, keeping the market mood sombre. The dollar has tended to rally during flare-ups of the conflict, underpinned by safe-haven demand and the U.S.'s lower sensitivity to energy price shocks; the yen tends to weaken as oil rises, given Japan's reliance on imported energy.
The yen on Wednesday fell to the closely watched 160 per dollar level, where authorities have previously intervened. That erased its gains made in the wake of Tokyo's 11.7 trillion yen ($73 billion) intervention a month ago to shore up the ailing currency.
Prime Minister Sanae Takaichi said later that authorities stood ready to respond to exchange-rate moves as needed.
The dollar was last a touch softer on the day at 159.66 yen, following Takaichi's comments.
