Japan Intervenes in Forex Markets for First Time in Three Months

Japan intervened in foreign exchange markets for the first time in three months on Thursday to prop up its yen currency, according to a market source. The intervention came as the yen's value fell to a four-decade low due to increased living costs caused by the Iran war-driven energy shock.

The Bank of Japan (BOJ) is expected to keep interest rates steady at 1% on Friday, but signal its readiness to continue pushing up borrowing costs. US Treasury Secretary Scott Bessent said that Japan may have intervened to prop up its yen currency and that it 'seems very undervalued to me.'

Finance Minister Satsuki Katayama declined to comment on whether Tokyo intervened, saying only that the government is 'always ready to respond with a sense of urgency' to exchange-rate moves.