Story perspectives

Yen drops to 160.78/$ as US jobs disappoint

7/2/2026

Summary

Yen Slides Post-Jobs

The yen fell to ¥160.78 per dollar on July 2 after weak U.S. payrolls.
June U.S. jobs rose 57,000, far below the 110,000 forecast, and unemployment fell to 4.2%.
Fed funds futures cut September-hike odds to 53% from 67%.
Japan’s Ministry of Finance gave no comment and stopped telegraphing intervention.
Traders called the July move jittery, citing thin liquidity and rate-check rumors.

Summary

Takaichi Caps Fuel

Prime Minister Sanae Takaichi announced subsidies to cap fuel costs after the yen’s plunge and rising living expenses.
Earlier this year Takaichi’s sales-tax cut proposal lifted Japanese government-bond yields, sparking a global bond sell-off.
The International Monetary Fund released reports that view Japan’s fiscal position more favorably.
Finance Minister Satsuki Katayama told U.S. Treasury Secretary Scott Bessent, who said he prefers the BOJ’s policy to address the yen over intervention.

Summary

Finance Ministry Intervenes

The Ministry of Finance favors yen intervention with the Bank of Japan (BOJ)’s hawkish stance.
Atsushi Mimura has stayed silent on yen policy since the last intervention, timing uncertain.
Chief Cabinet Secretary Minoru Kihara said Japan will act on FX moves as needed, without expanding rhetoric.
BOJ Deputy Governor Ryozo Himino warned that a weak yen could lift inflation as the yen fell to a low of 162.66 per dollar.

History

Historical Context

In March 1998, as the Asian financial crisis pushed the yen to ¥147 per dollar, the Bank of Japan—just granted legal independence—and the Ministry of Finance spent ¥30 billion of reserves to curb the slide, while the U.S. Fed cut rates. Today, Prime Minister Sanae Takaichi’s fuel subsidies and Finance Minister Satsuki Katayama’s low-profile stance echo that 1998 reluctant intervention.

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Yen Slides Post-Jobs

The yen fell to ¥160.78 per dollar on July 2 after weak U.S. payrolls.
June U.S. jobs rose 57,000, far below the 110,000 forecast, and unemployment fell to 4.2%.
Fed funds futures cut September-hike odds to 53% from 67%.
Japan’s Ministry of Finance gave no comment and stopped telegraphing intervention.
Traders called the July move jittery, citing thin liquidity and rate-check rumors.

1 / 4