FX.co ★ Japanese Yen Stabilizes

The Japanese yen held steady at approximately 156.6 per dollar on Friday, following two consecutive days of losses. Despite this stabilization, the yen remains close to its lowest level in ten months, prompting increased calls for potential intervention. Last month, Tokyo's verbal warnings temporarily prevented the yen from plunging further, with Finance Minister Katayama underscoring Japan's right to counteract extreme currency fluctuations. Nonetheless, concerns about further weakening persist. Business leaders in Japan are now urging the government to address the yen's depreciation and reinforce its strength. Japan's broad fiscal policy continues to be a point of concern as the national debt already surpasses twice the country's GDP. Recently, the Cabinet approved Prime Minister Takaichi's unprecedented 122.3 trillion yen budget, which aims to juggle substantial expenditure with debt control by limiting new bond issuances. The yen concluded 2025 with a slight 0.3% increase, breaking a four-year losing streak, aided by two interest rate hikes earlier this year.