Yen Strengthens as Japan Warns of Intervention, Aussie Softens Despite Rate Hike
The Japanese yen has continued to strengthen against its US counterpart following fresh warnings from Japanese policymakers about potential intervention.
Japan's Chief Currency Official Atsushi Mimura said the country's prime minister and finance minister, along with the US, have sent a 'very clear' message about yen depreciation, warning markets to take this seriously.
Finance Minister Satsuki Katayama echoed these sentiments in comments overnight, stating that 'the undervaluation of the yen is a problem' and reiterating Japan's commitment to maintaining close communication with US financial authorities to prevent disorderly foreign exchange market conditions.
The RBA delivered another rate hike for Australia, lifting its policy rate up to 4.60%, but this has not provided enough support for the AUD as it continues to struggle against broad-based USD strength and a sharp decline in commodity prices.