The Japanese yen hovered around ¥160 per US dollar on Friday, trading near this closely watched level for a third consecutive session and drawing renewed verbal intervention from policymakers. Prime Minister Sanae Takaichi said the government aims to bolster confidence in the yen by strengthening economic fundamentals, highlighting policies to spur domestic investment, reinforce supply chains, and lift the economy’s growth potential.
Finance Minister Satsuki Katayama reiterated that authorities stand ready to intervene in the foreign exchange market if needed and are maintaining close communication with US counterparts. Data released on Friday showed Japan’s foreign reserves declined at a record pace in May, as Tokyo sold foreign assets to finance its largest-ever currency intervention the previous month.
On the policy front, Bank of Japan Governor Kazuo Ueda said the central bank must carefully weigh the costs and benefits of raising interest rates if inflation risks begin to outweigh downside risks to economic growth.
