Japan Intervenes in Forex Markets to Support Weakened Yen

Japan intervened in foreign exchange markets on Thursday to prop up its yen currency ahead of the Bank of Japan's policy decision on Friday.

The move, which involved buying yen and selling dollars, came as the currency hit a four-decade low against the US dollar. The Japanese finance ministry has warned of action for months due to the yen's weakness exacerbating the cost-of-living impact of rising energy import prices.

According to a market source, Japan conducted its intervention in New York markets on Thursday, pulling the yen from four-decade lows. The currency stood at 159.63 against the dollar in Asia on Friday after hitting 159.22 per dollar on Thursday.

U.S. Treasury Secretary Scott Bessent said that Japan may have intervened to prop up its yen currency, stating that the yen 'seems very undervalued to me.'