Yen teeters on cusp of 40-year low as BOJ hike fails to stem rout

The US dollar climbed to around 161.8 yen late Thursday, nearing a 40-year high, even after the Bank of Japan raised rates to a 31-year high. Traders remain braced for possible Japanese currency intervention as the dollar also rose 1 percent against a basket of major currencies to a 13-month peak after the Federal Reserve signalled potential rate hikes by year end. The broad dollar strength and weak yen pose risk of pressure on emerging market currencies including the Indian rupee.