The yen hovered near the key 160-per-dollar threshold on Thursday, trading
around 159.36 per USD. Sources said Prime Minister Sanae Takaichi's government
supports rate hikes and that the next Bank of Japan policy move could come in
September or October; the BOJ and government are reportedly aligned on near-term
tightening amid concerns a weak yen is lifting prices and to reinforce recent
US-Japan currency interventions. Investors said the disclosures had little
market impact, as markets have largely priced in BOJ hikes. A wide US-Japan rate
gap and Japan's heavy public debt continue to weigh on the currency.
