Yen slides near 160
The yen weakened toward 160 per dollar, prompting Finance Minister Katayama to warn of possible intervention as oil‑linked stagflation risks rise—another source of input‑cost volatility for tech supply chains. Analysts say a weaker yen raises component import costs and could pressure margins for Japanese subcontractors Apple relies on. (fxstreet.com) (bloomberg.com)
Finance Minister Satsuki Katayama said on March 26 that the government would “respond firmly, including taking bold steps,” and announced an urgent meeting with financial institutions to explore support for firms hit by market moves. (bloomberg.com) Before Katayama’s remarks the yen was trading around 159.70 to the dollar and briefly strengthened to about 159.49 after her comments; official aggregates show USD/JPY reached 160.2010 on March 27, 2026. (bloomberg.com) Bloomberg reported crude oil topped $100 per barrel in early March amid heightened Middle East hostilities, and linked that energy shock to elevated stagflation risk for Japan as import bills rise. (bloomberg.com) Japan’s flash PMI for March showed input costs rising at the fastest pace in 11 months, with manufacturing PMI slipping to 51.4 and the composite to 52.5—data that regulators and analysts cite when flagging higher import-price pressure from a weak yen. (investinglive.com) Apple told investors on January 29 that rising component costs are threatening to squeeze margins, and Bloomberg’s earnings coverage noted the company warned of cost pressures in its fiscal Q1 2026 briefing. (apple.com) Murata Manufacturing, identified by Apple as an iPhone supplier, has been expanding production outside Japan with recent shipments from a Chennai plant and new capacity investments, moves analysts say are part of supplier responses to cost and currency volatility. (apple.com) Katayama also told reporters the finance ministry has made inquiries with market participants about crude futures and highlighted a Group of Seven meeting of energy and finance ministers as a near-term forum where Tokyo expects to coordinate responses. (bloomberg.com)
