FX.co ★ Yen Weakness Stokes Intervention Fears

The Japanese yen extended its recent weakness, hovering around 159.5 per dollar on Friday and staying close to the closely watched 160 level that previously triggered government intervention in the foreign exchange market in 2024. Finance Minister Satsuki Katayama reiterated that authorities stand ready to take “bold actions” to counter excessive currency moves, as surging energy prices driven by the conflict in the Middle East weigh on Japan’s oil‑importing economy and its currency.

Katayama also noted that the ministry is closely monitoring commodity markets, following reports that officials had contacted market participants earlier this week to discuss the possibility of intervention in crude oil futures. At the same time, investors continued to contend with elevated geopolitical risks in the Middle East, amid skepticism that the US and Iran will be able to reach an agreement to end the war in the near term. The yen is on track to lose more than 2% this month, setting up its steepest monthly decline since October.