The US dollar has once again reached a high against the Japanese yen not seen since October last year, further pressuring the Bank of Japan and raising the risk of government intervention in the foreign exchange market.

The yen's exchange rate against the US dollar has once again broken through the 150 mark, continuing to put pressure on the Bank of Japan and increasing the risk of government intervention in the currency market.

The renewed plunge in US Treasury bonds has widened the yield gap with Japan. On Thursday, the yen continued to be under pressure, with the US dollar against the yen reaching a high of 150.31, the highest level since October last year. Japanese authorities have repeatedly stated that they do not rule out taking any measures to curb excessive fluctuations in the currency market.

The decline of the yen will put pressure on the Bank of Japan to adjust its monetary policy. Coupled with speculation that an escalation of conflicts in the Middle East could boost demand for safe-haven assets, this has kept yen traders cautious.

Japanese Finance Minister Shunichi Suzuki said, "We are as usual urgently and highly concerned about the situation of foreign exchange fluctuations."

Bipan Rai, head of global foreign exchange strategy at the Canadian Imperial Bank of Commerce in Toronto, said, "The risk of intervention has clearly increased."

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In September and October last year, Japan used about 9 trillion yen (about 60 billion US dollars) to support the yen in three separate interventions, the first since 1998.

Since the beginning of this year, the yen has depreciated by more than 12%, becoming the worst-performing currency among the G10 member countries.

On October 3rd, the yen once touched 150.16, and then there was a significant reversal, triggering speculation that Japan had entered the market. However, officials neither confirmed nor denied whether they had intervened to support the currency.

Japan's top currency official, Masato Kanda, later said that if there is excessive fluctuation in the foreign exchange market, Japan will take appropriate measures, hoping that the currency can fluctuate stably and reflect the fundamentals.Win Thin, Global Head of Currency Strategy at Brown Brothers Harriman & Co., stated, "The US dollar short against the Japanese yen seems to have triggered some stop-losses, pushing it above the October 3rd high.

The thin market also did not help, as the currency pair's trading price has reached a recent high."

Meanwhile, the yield on the 10-year US Treasury bond surged to 4.95% on Wednesday, while the yield on Japanese government bonds was only 0.85%. This spread put pressure on the yen and sparked market speculation that the Bank of Japan would adjust its monetary policy.

According to reports, Bank of Japan officials are considering whether to adjust the Yield Curve Control (YCC) program, as domestic long-term interest rates in Japan have been rising in tandem with US rates, it did not specify the source. Bipan said:

"Fundamentally, programs like YCC are chaotic, and the longer they last, the fewer good options there are."