Yen Bounces on Trump Concerns, Intervention Looming
The Japanese yen experienced a rebound on Friday, reaching around 158 per dollar after Finance Minister Satsuki Katayama commented on President Donald Trump's concerns about the currency. The yen had been under pressure due to expectations of additional Federal Reserve rate hikes and uncertainty over the pace of tightening policy by the Bank of Japan.
Katayama stated that she would continue coordinating with her US counterpart Scott Bessent, citing their previous coordinated intervention in late July. This move marked the first such action since 1998.
The yen's recovery snapped a five-session losing streak and halted its decline towards the key 160 level, which could test Tokyo's tolerance for further weakness. Markets were already on high alert for potential intervention at this threshold.