Yen's Fading Gains Spark Fresh Intervention Speculation

The Japanese yen attempted to recover from its two-week low against the US dollar in Asian trading on Friday, but still headed towards its biggest weekly loss since May.

Despite a rebound, the currency lost nearly half of its gains made after the joint Japanese-US intervention in late July and early August.

Mitsuhiro Furusawa, Tokyo's former top currency diplomat, told Reuters that Japan could conduct further joint intervention 'at any time', signaling the possibility of raising interest rates faster than expected to curb depreciation in the currency.

The US Dollar Index fell 0.1% on Friday, extending losses for a second consecutive session and reflecting continued weakness in the US currency against a basket of global currencies.