FX.co ★ Yen Slips in Holiday-Thinned Trade

The Japanese yen declined beyond 156.5 against the U.S. dollar on Monday, shedding some of its previous gains as market participants assessed a series of verbal interventions by officials aiming to curb the currency's depreciation. On Sunday, Takuji Aida, an adviser to Prime Minister Sanae Takaichi, suggested that Tokyo might take active measures in the foreign exchange markets to mitigate the adverse economic impacts of a declining yen. Last week, Bank of Japan Governor Kazuo Ueda and Finance Minister Satsuki Katayama also addressed the yen's ongoing weakness, prompting speculation that authorities might intervene should the currency approach the 160 per dollar mark, consistent with past intervention thresholds. The yen had dropped to ten-month lows the previous week, amid concerns about Japan’s fiscal stability spurred by Takaichi's extensive stimulus package, while her government also supported maintaining low interest rates.