USD/JPY Hits Multi-Decade High as Yen Stabilizes

The US Dollar to Yen exchange rate has reached its strongest level since 1986, trading at around 163.85.

This marks a significant increase from August's price of roughly 147, with a gain of approximately 0.75% this month.

Scotiabank notes that the Japanese Yen is showing tentative signs of stabilization, but it continues to underperform compared to other G10 currencies.

The latest pause in the pair's rise has been driven by softness in the US Dollar rather than any commentary from Japanese officials.

Finance Minister Katayama has warned of 'bold action' to counter excessive currency moves, but Scotiabank points out that intervention threats have had little meaningful effect on the Yen.