Yen Volatility Spikes Amid Interest Rate Hike Speculation

The Japanese yen has been experiencing volatility in recent days, prompting speculation about potential intervention from Tokyo to prop up the currency. Following a sharp drop of 2% last week, the yen was trading at 156.64 per US dollar on Monday, with investors awaiting further rate hikes from major central banks.

The yen's decline has sparked concerns among traders and policymakers, who are monitoring liquidity levels amidst low activity due to Japan's three-day holiday. The market is also keeping a close eye on interest-rate outlooks following last week's wave of hikes.