The Japanese yen hovered near a five-month low, trading around 157 per dollar on Tuesday, marking a 4.9% decline for the month.
Yen holds near five-month low
This sharp drop has fueled speculation about possible intervention by Japanese authorities to stabilize the currency. Last week, the Bank of Japan kept its policy rate unchanged and provided limited insight into the timing of future rate hikes. Governor Kazuo Ueda indicated that the central bank would evaluate additional data on Japanese wage growth and the economic policies of US President-elect Donald Trump before deciding on interest rate adjustments.
Trading activity is muted
Meanwhile, trading activity has slowed with the onset of the holiday season, potentially reducing market liquidity and increasing price volatility.
