FX.co ★ Yen Strengthens on Fresh Intervention Hints

The Japanese yen appreciated to approximately 155 yen per U.S. dollar, building on gains made in the previous session, driven by renewed signals that authorities may intervene. Finance Minister Satsuki Katayama stated that Japan maintains flexibility in dealing with excessive currency movements, which serves as the clearest indication so far that Tokyo might step in to stabilize abrupt market shifts. Her comments came in the wake of statements from leading currency official Atsushi Mimura, who stressed that the authorities are prepared to take "appropriate" measures to counteract excessive volatility in exchange rates, highlighting concerns over sharp, unilateral trends. On the international front, the yen also benefited from a generally weaker U.S. dollar, amid rising expectations for two rate cuts by the Federal Reserve in the coming year. In the meantime, the Japanese government is slated to finalize the draft budget for fiscal year 2026 this Friday. It is projected that new debt issuance for fiscal 2026 will slightly exceed the 28.6 trillion yen ($182 billion) issued during the current fiscal year.