FX.co ★ Yen Set for First Monthly Gain in Five

The Japanese yen edged toward 154 per dollar on Friday yet remained poised for its first monthly gain since August. This comes amid speculation of intervention that propelled the currency to its highest point in four months, despite central bank data suggesting that officials have not taken formal action. The yen has risen nearly 2% this month, with an increase of up to 4.6% from its January lows. The recent uptick was initially driven by reports that the New York Federal Reserve conducted a rate check on the dollar/yen, sparking speculations of a potential coordinated currency intervention by the US and Japan. However, US Treasury Secretary Scott Bessent downplayed these reports, asserting that the US continues to uphold a strong dollar policy. Nevertheless, traders are vigilant regarding the possibility of solo intervention by Japanese authorities, following a series of cautionary statements from local officials. Economically, Japan saw an unexpected decline in retail sales in December, though industrial production fell less than anticipated.