The value of the Japanese yen fell to approximately 157.5 against the US dollar on Wednesday, nearing its lowest point in over five months and closing in on the 160 mark—a level that previously triggered government intervention six months ago.
Kato Warns Against Yen’s Erratic Movements
At the start of the week, Finance Minister Katsunobu Kato cautioned against sudden and speculative changes in the yen’s value, indicating the government might step in again if the yen’s fluctuations become too erratic.
The yen is currently struggling as doubts increase regarding when the Bank of Japan (BOJ) might raise interest rates.
BOJ Policy Hinges on Economy and Inflation Trends
BOJ Governor Kazuo Ueda stated that any changes in policy would be based on the economic situation, inflation trends, and financial conditions, underlining the need for consistent wage increases. The central bank has also advised prudence in response to uncertainties at home and abroad.