Hedge funds are ignoring yen intervention warnings and wagering in the currency option markets that it may fall toward 165 to a dollar before Japanese authorities step in.

The Japanese yen tumbled to its weakest level against the U.S. dollar since July 2024 on Tuesday on concerns about looser fiscal and monetary policy in the country.

Speculation over snap polls and big spending plans weakens currency, pushing traders to brace for Tokyo’s next move

Japan’s finance minister issued a fresh warning to speculators after the yen weakened to its lowest level against the dollar in 18 months amid reports of a snap general election.

USD/JPY represents the currency exchange rate for the U.S. dollar and the Japanese yen. The pair can indicate market risk and has a close correlation with Treasuries.

In 2025, despite a nearly flat yen, WisdomTree Japan Hedged Equity Fund outperformed its unhedged counterpart by more than 400 bps. Read more here.

NEW YORK >> The yen rebounded from an 18-month ‌low against the dollar today as Japanese officials warned of potential intervention to shore up the currency, while the U.S. currency was modestly weaker against the euro as traders continued to evaluate likely Federal Reserve policy.

Japan's financial authorities are getting annoyed about the weak yen. And it's easy to see why. The currency early Wednesday fell to more than 159 per U.S. dollar, leaving it only a few yen shy of its weakest in more than 30 years,