31.07.202600:08:26UTC+00Yen Strengthens on Suspected Intervention

The Japanese yen hovered near 160 per dollar on Friday after jumping as much as 3.3% in the previous session, amid growing market speculation that Tokyo had intervened again to prop up the currency ahead of the Bank of Japan’s policy decision. Nikkei reported that Japanese authorities stepped into the foreign exchange market and that US officials requested quotes for the dollar-yen rate. Finance Minister Satsuki Katayama has repeatedly indicated that authorities are prepared to act at any time, while emphasizing that Japan remains in close contact with the US on foreign exchange matters. Earlier this month, the yen slid to its weakest level in about 40 years, pressured by elevated energy costs, fiscal concerns, and wide interest rate differentials. Investors are now focused on the BOJ’s policy announcement later today, with the central bank widely expected to keep interest rates unchanged following its June rate hike.