The yen extended a 20-year low against the US dollar yesterday, weighed down by the widening gap between yields in Japan and the US, stoking speculation over potential intervention.
The currency fell as much as 0.8 percent to ￥132.96 per US dollar the lowest since April 2002 with benchmark Treasury yields trading above the closely watched 3 percent level.
It slid to a seven-year low against the euro and the Australian dollar, heaping pressure on a Japanese government facing a backlash over rising prices.
Japanese companies and households have become increasingly vocal about the negative effects of the weaker yen as