Japanese Yen Stabilizes at Low Levels, Will the Government Intervene?
The Japanese yen stabilized around 156.6 per dollar in Friday trading, after two consecutive days of weakening. However, the Japanese currency remains near a ten-month low, prompting calls from various parties for intervention to prevent further weakening. Tokyo had previously issued a verbal warning keeping the yen out of the intervention zone, but market concerns remain high.
Japanese business leaders are now pressuring the government to take decisive action to support the yen. Concerns arise from Japan's expansionary fiscal policy and a public debt that is already more than twice the size of the country's economy. The cabinet recently approved a 122.3 trillion yen budget that seeks to balance large spending with debt management, including limiting new bond issuance.
The yen ended 2025 with a modest 0.3% gain, marking the end of four consecutive years of decline. Two interest rate hikes last year also contributed to this slight gain. However, with continued weakening pressure, many are now waiting for concrete government action to stabilize the currency and maintain domestic purchasing power. (az)
Source: Newsmaker.id
