Yen Under Pressure as Tokyo Exchanges Close Amid Speculation of Intervention

The Tokyo Stock Exchange and Osaka Exchange are closed for three days this week, raising speculation about potential intervention to prop up the yen.

The holiday closures coincide with thin trading in Asia, which could amplify any government-led efforts to support the currency. The yen fell by as much as 1.3% against the dollar on Friday to close at around 157 per dollar, down over 2% for the week after the Bank of Japan raised interest rates.

The thin holiday liquidity has sparked speculation that authorities might use this opportunity to intervene in the market. During Golden Week in April and May, Japan spent a record ¥11.7 trillion supporting the yen, which had breached key levels around 160-164 against the dollar.