The Japanese yen continues to depreciate with no sign of rebound, and the effectiveness of intervention warnings is weakening.

1. The Japanese yen hovered around 163.10 against the US dollar on Wednesday, remaining generally weak. Media reports indicate that the Bank of Japan is open to raising interest rates faster than the market expects, but this signal has not provided lasting support for the yen. 2. According to insiders, the Bank of Japan remains vigilant about upside inflation risks, which could prompt rate hikes beyond expectations. However, amid a broadly stronger US dollar, continued expectations of Federal Reserve rate hikes, and a persistently high US-Japan interest rate differential, the yen lacks fundamental support. 3. The US dollar briefly rose to 163.23 against the yen during Tuesday's trading, reaching its highest level since December 1986. Japan’s Finance Minister issued another verbal warning on Thursday, stating he is ready to take “decisive actions” in the foreign exchange market. In April and May this year, authorities intervened to buy yen when it fell below the 160 mark. 4. A senior analyst at Sony Financial Group pointed out that the yen breaking through the 163 level has intensified concerns over intervention, but Japanese officials have not issued strong warnings, causing some investors to believe that authorities may tolerate further weakness in the yen. She said there is considerable uncertainty about the timing and manner of intervention.