The Japanese yen climbed more than 2% to around 157 per dollar, in what traders interpreted as a possible intervention by the Bank of Japan. Earlier in the session, the currency had weakened beyond 160 per dollar—its lowest level since July 2024, when authorities last stepped in to support it. Japan’s Finance Minister Satsuki Katayama also cautioned that the moment for “decisive action” in the market was drawing near. Last week, the Bank of Japan left its policy rate unchanged at 0.75%, as it continues to weigh inflation risks against concerns over slowing growth linked to the Middle East conflict. Three of the nine board members voted in favor of a rate hike, and Governor Kazuo Ueda reaffirmed the central bank’s commitment to a gradual tightening path.