FX.co ★ Yen Stays Weak Near Key Intervention Threshold

The Japanese yen traded around ¥159.5 per dollar on Monday, remaining under pressure and hovering near the closely watched ¥160 level that previously prompted official intervention to support the currency. Data released on Friday showed that Japanese authorities spent ¥11.7 trillion intervening in the foreign exchange market in late April, confirming widespread market speculation.

On the policy front, investors are divided over whether the Bank of Japan will deliver another interest rate hike this month, as policymakers weigh mounting uncertainties linked to tensions in the Middle East. Market participants are now awaiting remarks from BOJ Governor Kazuo Ueda later this week for further guidance on the central bank’s policy outlook.

Meanwhile, Japan’s capital spending was flat in the first quarter from a year earlier, indicating a slowdown in corporate investment and heightening concerns about the strength of domestic economic momentum.