January 07, 2025 at 03:08AM
USD/JPY has dribbled off its session high after verbal intervention remarks.
Japan verbal intervention to support the yen – Fin Min Kato will take action
Japan’s Finance Minister Katsunobu Kato reiterated concerns about speculative yen selling as the currency hit 158.40 per dollar. This is not far from 160, a level that triggered intervention six months ago.
Speaking at a press conference, Kato emphasized that the government is alarmed by sharp, one-sided moves in the foreign exchange market, particularly those driven by speculators, and is prepared to take action against excessive volatility.
USD/JPY rose to its strongest since July, supported by higher U.S. Treasury yields. The yen has remained under pressure due to widening U.S.-Japan interest rate differentials, with limited prospects for narrowing in the near term. This pressure is exacerbated by uncertainty surrounding U.S. President-elect Donald Trump’s tariff policies, which could lead the Federal Reserve to maintain higher interest rates.
USD/JPY update:
This article was written by Eamonn Sheridan at www.forexlive.com.