Japanese Currency Weakens, Market Wary of Tokyo's Move
The Japanese yen hovered around 162.5 per US dollar in trading on Thursday (July 2nd). This remains its weakest level in four decades, keeping market participants wary of possible intervention by Japanese authorities.
Market attention is heightened ahead of the US national holidays, when market liquidity is typically thinner. This situation is considered to amplify the impact of intervention if the Japanese government takes official steps to support the yen.
Japanese Finance Minister Satsuki Katayama said on Wednesday that authorities will respond appropriately to developments in the foreign exchange market whenever necessary. This statement reiterated previous warnings that the government continues to monitor the yen's movements closely.
Although Federal Reserve Chairman Kevin Warsh stated that US inflation expectations have eased in the past month, the yen remains under pressure against the US dollar. Investors remain skeptical that the Bank of Japan will accelerate monetary policy tightening, while the carry trade and the wide interest rate differential between Japan and the United States continue to weigh on the Japanese currency. (asd)
Source: Newsmaker.id
