Yen Strengthens, What's the Sentiment?
The Japanese yen traded near 161 per US dollar on Friday (July 3), after surging nearly 1% in the previous session. This strengthening occurred after Japanese Finance Minister Satsuki Katayama reiterated that authorities are ready to intervene at any time to support the currency.
Katayama's statement came amid growing speculation that Japan could intervene in the foreign exchange market again. Thinner liquidity during the US holiday weekend is considered to create more supportive conditions should authorities take official action.
Katayama also stated that Japan and the United States remain in close communication regarding exchange rate policy. On Thursday, the yen rebounded sharply from a 40-year low after reports emerged that Japan may no longer signal its intervention plans to the market in advance.
This move surprised traders and helped prompt the unwinding of speculative positions in the yen. Furthermore, the yen also received support from a weaker US dollar after weaker-than-expected US employment data led the market to cut expectations for a Federal Reserve interest rate hike this year. (asd)
Source: Newsmaker.id