FX.co ★ Japanese Yen Rises on Intervention Fears

The Japanese yen showed signs of strength on Thursday, advancing toward 158 against the dollar. This marks a recovery from its lowest point since July 2024, a period when government intervention was necessary after the currency slipped past the critical 160 threshold. Earlier this week, Finance Minister Satsuki Katayama, alongside US Treasury Secretary Scott Bessent, expressed apprehensions about the yen's "one-sided depreciation" during a bilateral meeting held concurrently with a multilateral finance ministers' conference. Bessent further emphasized the importance of clear and transparent monetary policy guidance, reiterating remarks made last October in which he encouraged the Japanese government to afford the Bank of Japan the "policy space" required to address inflation. Meanwhile, market speculation persisted about a possible snap election scheduled for next month, which might lead to a more aggressive fiscal stimulus, keeping the yen under pressure.