The Japanese yen hovered around 162 per dollar on Tuesday, lingering near its weakest level in about 40 years as investors continued to bet against the currency in the absence of fresh intervention by Japanese authorities. Markets remained on alert for any potential move by Tokyo to shore up the yen, though many traders questioned whether intervention on its own would deliver lasting support.
Finance Minister Satsuki Katayama reiterated that officials are prepared to step into the foreign exchange market whenever needed, noting that Japan and the US are maintaining close communication on currency matters. The yen also faced sustained pressure from concerns over Japan’s fiscal expansion and expectations that the Bank of Japan will remain behind its peers in normalizing monetary policy.
At the same time, investors evaluated new data showing that nominal wages rose 3.2% in May, while household spending slipped 0.4%.
