The government will struggle to halt the yen's advance toward a record high because the U.S. probably won't support any intervention to weaken it, said Eisuke Sakakibara, formerly Japan's top currency official.
"Right now the U.S. government doesn't want Japan to intervene," Sakakibara said in an interview. "They prefer to let the weak dollar prolong in order to promote exports."
The yen may rise past its postwar high of 79.75, reached in April 1995, by as early as the end of September, he said. The currency reached 84.73 to the dollar on Aug. 11, the strongest level since July 1995, spurring speculation the government may take action to curb the currency's gains to aid exporters.