For more than 30 yearsCtrcrashteamracingThe yen fell below Y155 against the dollar for the first time, increasing the risk of reaching a critical level that could prompt Japan to enter the market.

On Wednesday, the Asian country's currency depreciated by 0%.CtrcrashteamracingThe yen broke through 155.17 points against the dollar for the first time since June 1990, when it hit an intraday low of 155.17. As of 12:41 New York time, the yen had fallen somewhat, trading around 155.09.

"regardless of the level, the risk of intervention is still high," said Win Thin, global head of market strategy at Brown Brothers Harriman at Brown Brothers. "

The yen was driven lower on Wednesday by demand for selling contracts against the dollar and the euro, according to Depository Trust & Clearing Corporation. These include buying $300 million yen options that expire a month later and selling yen at 156 yen to the dollar, putting pressure on the yen on the spot market.

Japanese officials have repeatedly said they will take the necessary action to deal with excessive volatility in the yen if necessary. The focus of the authorities is on the speed of Japan's devaluation, not on the precise level of devaluation.

In a tripartite statement last week, the US, Japan and South Korea said they would continue to consult closely on the development of foreign exchange markets, while acknowledging that Japan and South Korea were seriously concerned about the recent sharp devaluation of their currencies.

Although the BoJ raised short-term policy rates in March for the first time since 2007, the yen has fallen about 9 per cent so far this year, making it the worst-performing currency in the Group of 10. To make matters worse, oil prices are likely to rise at a time of rising tensions in the Middle East, which could hurt Japan's trade balance.

Traders and strategists are looking forward to the end of Friday's policy meeting of the Bank of Japan (Bank of Japan), and almost all economists surveyed expect the central bank to keep monetary policy unchanged.

"an unexpected rate hike will be more meaningful than foreign exchange intervention," said Piotr Matys, a senior foreign exchange analyst at InTouch Capital Markets Ltd. Although Matys believes this is a low-probability situation, "the most effective way to stabilize a hard-hit currency is to raise interest rates, which surprised the market."

Meanwhile, the Federal Reserve (Federal Reserve) is preparing to make a monetary policy decision next week, with investors keeping a close eye on the yield gap between the US and Japan. The Fed's PCE update will be released after the decision of the Bank of Japan's policy meeting on Friday.

"the Ministry of Finance may want the Bank of Japan (Bank of Japan) to make some hawkish comments after Friday's policy meeting," said Jane Foley, head of foreign exchange strategy at Rabobank. However, if the US PCE performs strongly later in the day, it will strengthen the dollar. "