The Japanese yen steadied at around 152.8 per dollar on Friday, after Finance Minister Katsunobu Kato indicated that Japan would take "appropriate action" to address excessive fluctuations in the foreign exchange market.
Japanese yen strengthens on verbal intervention
Kato reiterated official warnings against speculative trading and emphasized that the government is closely monitoring the impact of Donald Trump’s policies on Japan’s economy. His remarks came after opposition leader Yuichiro Tamaki raised concerns that Trump's policies could exacerbate inflation in the U.S., putting additional downward pressure on the yen.
Rebounding after US vote
On Wednesday, the yen had fallen nearly 2%, weighed down by a sharp rally in the dollar following Trump’s decisive victory in the U.S. presidential election. However, the yen rebounded by approximately 1% the next day as traders took profits on the dollar and the Federal Reserve implemented a 25 basis point rate cut.
