Markets brace as yen slides past key 150 level

STORY: The yen fell past the key level of 150 to the dollar on Thursday (October 20).

It is the first time the Japanese currency has gone through that number since 1990.

The break above the key milestone puts more pressure on Tokyo to step into the currency market again to rein in the Japanese unit's decline.

Japanese Finance Minister Shunichi Suzuki said authorities were willing to act.

"We will continue to watch currency market developments with a strong sense of urgency and take appropriate steps against excess volatility."

Japanese policymakers have signalled they were watching the speed of yen moves, rather than targeting a specific level, in deciding whether to intervene.

The Bank of Japan made a show of resolve Thursday to keep its ultra-low interest rate policy that is blamed for pushing down the yen.

It ramped up efforts to defend its 0% bond yield cap with offers of emergency bond buying.

The BOJ has repeatedly ruled out the chance of raising the bank's ultra-low interest rates to moderate the yen's downtrend.

That even as it warned sharp yen moves could hurt the economy.

The central bank's action shows Tokyo's dilemma as it tries to contain yen falls, without resorting to interest rate hikes that could hurt Japan's fragile recovery.

Last month, the government acted to prop up the yen for the first time since 1998.

It spent $19 billion in a dollar-selling, yen-buying intervention - but the dollar has still surged some 30% against the yen this year.

Analysts expect the currency to stay on a downtrend as long as the BOJ stays unique among global central banks and does not hike rates.