The Japanese yen briefly fell below 160 per U.S. dollar on Friday in New York for the first time since Japan conducted coordinated yen-buying with the United States in late July.
The yen faced selling after a closely watched speech by Federal Reserve Chair Kevin Warsh spurred speculation that the gap between interest rates in the two countries will widen.
In his remarks in Jackson Hole, Wyoming, Warsh left the door open for a potential interest rate hike if inflation is not kept in check, saying "We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do."
The yen's depreciation against the dollar in recent years is partly attributable to U.S.-Japan interest rate differentials. The yen-buying, dollar-selling operation had marked the first joint market intervention by the two countries in 15 years.
