Yen Strengthens, USD/JPY Far from 160
The Japanese yen rebounded from a five-week low against the US dollar on Wednesday after Japanese Prime Minister Sanae Takaichi warned Tokyo was ready to act to curb the yen's weakening. The USD/JPY pair retreated from the key 160.00 level and briefly touched 159.55.
Takaichi emphasized that foreign exchange stability is crucial for the Japanese economy and said the government is ready to take "appropriate measures" in the foreign exchange market at any time if necessary. She also highlighted the rise in speculative transactions not driven by real needs and stated that Japan will deepen international cooperation, including with the US, to prevent unwanted yen weakening.
This statement reinforces previous signals from authorities. Finance Minister Satsuki Katayama also said the government is ready to respond to yen movements if necessary, and the market is awaiting a speech by Bank of Japan Governor Kazuo Ueda, which is expected to provide clues on the direction of interest rates.
Despite the yen's brief strengthening, structural pressures remain. Japan, as an oil importer, is sensitive to rising energy prices, while relatively low JGB yields and uncertainty about how quickly the Bank of Japan (BoJ) will tighten policy make the yen vulnerable. USD/JPY also remains near an area often viewed by markets as a threshold for intervention, given the sharp movement on April 30th, which was linked to alleged authority action. (asd)
Source: Newsmaker.id
