The Japanese yen weakened to around 157.5 per dollar on Tuesday, falling for a third consecutive session and keeping traders on alert for potential intervention during Japan’s extended holiday. Tokyo has previously used periods of thin holiday liquidity to step into currency markets, and concerns grew after reports that the Bank of Japan conducted a rate check with market participants late Friday.
The yen also remained under pressure from a stronger US dollar, as hawkish remarks from Federal Reserve officials reinforced expectations of further interest rate hikes in the United States. Last week, the Japanese currency fell sharply even after the BOJ delivered a widely anticipated rate increase, with two policymakers dissenting from the decision.
Governor Kazuo Ueda reiterated that the BOJ is committed to further rate hikes and to adjusting the scale of monetary accommodation as economic conditions evolve, while emphasizing that overall financial conditions are expected to remain accommodative to support growth.
