Yen Suffers Setback as Intervention Gains Fade Amid Energy Concerns

The Japanese yen weakened past 158 per dollar on Friday, surrendering some of the gains made after a joint currency intervention by Tokyo and Washington. The move has sparked speculation that authorities may intervene again to support the currency.

The yen's retreat underscores doubts over the effectiveness of intervention in reversing its longer-term weakness, which is driven by wide interest rate differentials, growing fiscal concerns, and high energy and import costs.

Additionally, the yen faced pressure from a stronger dollar and rebounding oil prices following renewed tensions in the Strait of Hormuz.

Data released on Friday showed Japan's household spending fell 3.3% in June, defying expectations for a 1% increase and highlighting continued softness in consumer demand.