Yen rises on verbal intervention

The Japanese yen appreciated past 157 per dollar on Friday, halting its recent slide after Bank of Japan Governor Kazuo Ueda told the parliament that a weak yen could push up import costs and broader prices, warranting careful attention.

Finance Minister Satsuki Katayama also suggested that intervention was possible to curb excessive volatility and speculative moves.

Traders now anticipate that authorities could act again if the currency approaches 160 per dollar, consistent with past intervention levels.

Despite the pause, the yen is set to lose nearly 2% for the week, remaining near its weakest level in ten months after the cabinet approved a 21.3 trillion yen stimulus package, the largest since the Covid-19 pandemic and amplifying concerns over Japan’s fiscal health.

On the data front, Japan’s core inflation rose to a three-month high in October, while exports exceeded expectations.