FX.co ★ Japanese Yen Falls to Four-Week Low

The Japanese yen weakened to around 159.5 per dollar on Thursday, its lowest level in four weeks and edging closer to the key 160 mark that is widely believed to have triggered Tokyo’s market intervention last month. Investors are now looking ahead to official Ministry of Finance data due on Friday, which could confirm whether the government stepped in to support the currency, with some analysts estimating that authorities may have deployed as much as 10 trillion yen in the process.

On the policy front, Bank of Japan Governor Kazuo Ueda cautioned that inflation risks are rising, driven in part by higher oil prices, but he stopped short of indicating whether the central bank might raise interest rates at its next meeting. At the same time, BOJ Deputy Governor Ryozo Himino reiterated the bank’s commitment to further rate increases, while stressing that the timing and pace of any moves will depend on how the conflict in the Middle East shapes Japan’s economic conditions and inflation outlook.