FX.co ★ Yen Steadies on Verbal Intervention

The Japanese yen stabilized around 157 against the US dollar on Friday, putting a temporary halt to its recent depreciation. This follows remarks from Finance Minister Satsuki Katayama, who indicated the possibility of intervention to counter excessive market fluctuations and speculative behavior. Market participants are now eyeing potential governmental action should the yen slide towards 160 per dollar, aligning with previous intervention behaviors. Despite this stabilization, the yen is on track to decline by nearly 2% over the week, languishing near its weakest point in a decade as the market anticipates a substantial stimulus package from Prime Minister Sanae Takaichi’s administration, anticipated to surpass 20 trillion yen. This extensive expenditure has sparked worries regarding Japan’s fiscal stability, intensifying a prevailing sentiment to "Sell Japan," impacting both the yen and domestic bonds. In economic data, Japan’s core inflation climbed to its highest in three months in October, and exports performed better than anticipated.