Yen drifts after breaching 2023 low, dollar hits one-month high

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The yen slipped on Monday to its lowest level against the dollar since November, breaching the key 145 mark before regaining ground as traders looked for clues of possible intervention.

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14 Aug 2023

The dollar hit a one-month high against a basket of major currencies, before steadying, as investors sought a safe haven on concerns about China's economy.

Japan's currency weakened to as low as 145.22 per dollar in early Asian hours, its lowest since Nov. 10, before quickly reversing course in a volatile start to the week. The dollar last fetched 144.78 yen, down 0.12%.

The Bank of Japan has stuck to its ultra-loose monetary policy as global central banks have hiked interest rates, making returns in other countries look more attractive and weighing heavily on the yen.

Japan intervened in currency markets last September when the dollar rose past 145 yen, prompting the Ministry of Finance (MOF) to buy the yen and push the pair back to around 140 yen. The yen is down nearly 10% against the dollar for the year.

«Lack of verbal intervention so far suggests that the