The Japanese yen saw an uptick against the U.S. dollar on Tuesday as indications emerged of Tokyo’s readiness to intervene if necessary. The dollar’s weakness led to the yen’s current rally, although it hovers near historical lows.
Japanese Finance Minister Satsuki Katayama emphasized that Japan could act against erratic yen movements, hinting at potential interventions during low-liquidity periods like the Christmas season. Matt Simpson from StoneX signaled the strategic timing for any intervention plans.
Meanwhile, the U.S. dollar is pressured with expectations of a long-term decline. Analysts predict a moderate yen recovery, dependent on U.S. yield performance and BOJ’s cautious stance in the rate hike cycle.
(With inputs from agencies.)
AloJapan.com