FX.co ★ Yen Gains Amid Fresh Verbal Warning

The Japanese yen strengthened beyond 158 per dollar on Thursday, reaching a one-week high after Finance Minister Satsuki Katayama warned that authorities stood ready to intervene in the currency market again if needed. She also stressed that Washington and Tokyo’s stance remained unchanged following their joint intervention to support the yen in July. Her remarks followed a bout of weakness in the currency on Wednesday, triggered by hotter-than-expected US inflation data.

On the monetary policy front, Bank of Japan board member Junko Koeda cautioned against being overly cautious in raising interest rates, suggesting the central bank remains on course for further hikes in the coming months. Earlier reports indicated that the BOJ was reluctant to deliver an unusual back-to-back rate increase this month, while still leaving the door open to a possible hike in December.