The Japanese yen weakened toward 159.5 per dollar on Tuesday, erasing the previous session’s gains as verbal interventions by authorities again failed to stem the currency’s slide. Finance Minister Satsuki Katayama said recent exchange rate movements do not reflect economic fundamentals, repeating her warning that the government stands ready to act to support the yen. She emphasized that officials are fully prepared to respond at any time, citing the impact of currency swings and higher oil prices on households and everyday life.
Meanwhile, Bank of Japan Governor Kazuo Ueda noted that underlying inflation is gradually moving toward the central bank’s 2% target. The BOJ is widely expected to leave interest rates unchanged this week, amid elevated uncertainty over how the war in Iran will affect Japan’s domestic economy. Tokyo has so far rejected US President Donald Trump’s request to dispatch warships to escort oil tankers through the Strait of Hormuz.