The exchange rate of the yen fell below 160, highlighting the vulnerability of the yen's further weakening. It also meant that the risk that the Japanese authorities would once again intervene to contain the decline in the yen increased. Although the exact threshold of intervention is still difficult to determine, strategists warned on Monday that there are quite a few prices that could trigger the authorities to take another step to contain the sharp fall in the yen. The most recent one started at 161, followed by the 162-163 region. However, they still believe that apart from buying time, the intervention will probably not be more effective; the yen has taken back more than half of the record increase during the intervention since the end of July. The latest wave of decline in the yen was driven by the overall strengthening of the US dollar last Friday. At that time, the market bought dollars in anticipation of rising US interest rates. This further confirms the view that much of the yen's movements cannot be controlled by Japan. Since the US and Japan joined forces to buy yen for the first time since 1998, the yen has not been able to break through the 155 mark. Since then, the yen has once again faced downward pressure. The exchange rate of the yen against the US dollar was 159.77, up about 0.2% from around 160.09 when the New York session closed last Friday.

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