(Bloomberg) -- The yen weakened back past 145 per dollar, setting the stage for Japan's authorities to potentially intervene to prop up the currency for a second time this year.
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Japan's currency slipped as much as 0.4% to 145.30, extending this year's decline to 21%. The yen had tumbled to a 24-year low of 145.90 on Sept. 22 before policy makers decided to intervene to contain losses.
The yen's slide highlights the authorities' struggle to shore up the currency as the Bank of Japan's maintains an accommodative policy even as the Federal Reserve raises interest rates. The finance ministry spent 2.84 trillion yen ($19.6 billion) in September to slow its slide.
"The yen is at risk of further depreciation as long as the BOJ's yield-curve control remains in status quo and other central banks, including the Fed, continue to embark on tightening or policy normalization," said Christopher Wong, a strategist at Oversea-Chinese Banking Corp. Officials may intervene "but history suggests the impact may only be short-lived unless intervention is coordinated."
Finance Minister Shunichi Suzuki said before the yen weakened past 145 on Monday that the government remains ready to take necessary responses on excessive foreign-exchange moves. Japan has $1.29 trillion dollars of foreign-exchange reserves as of August, according to the ministry.
Traders are now watching for a potential break of the 147.66 level, which would take the yen to the weakest since 1990.
When Japan intervened to support the yen 1998, the country didn't act unilaterally as the US was also involved in selling dollars.
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