Yen edges up on intervention watch
The Japanese yen rose to around 156.6 per dollar on Tuesday, recovering losses from the previous session amid speculation that authorities could intervene to curb the currency’s decline.
On Sunday, Takuji Aida, an adviser to Prime Minister Sanae Takaichi, said Tokyo is prepared to actively intervene in currency markets to offset the negative economic effects of a weak yen, echoing remarks from Bank of Japan Governor Kazuo Ueda and Finance Minister Satsuki Katayama.
Markets are eyeing upcoming US holidays this week as potential windows for Japanese intervention, as periods of low liquidity could amplify the impact.
The yen has been weakening since early October following PM Takaichi’s election, as she introduced a massive fiscal package and signaled support for loose monetary policy.
UCapital Asset Management LLP or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.
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