Yen declined in Asian trade on Friday against a basket of major rivals, resuming losses after a two-day hiatus against the dollar, while heading for the third weekly loss in a row after the Japanese economy slid unexpectedly into recession.
The new growth data cast doubt on the possibility of the Bank of Japan exiting current ultra-easy policies this year, in turn pressuring the Japanese currency.
USD/JPY
USD/JPY rose 0.3% to 150.36, with a session-low at 149.82.
The yen rose 0.4% on Thursday, amid attempts to recover from three-month lows at 150.88.
Yen was also boosted by official remarks from Japanese officials on intervention to support the local currency.
Japanese forex officials warned on Wednesday that authorities are monitoring forex movements closely, and will take necessary measures to support the local currency if needed.
They said the latest moves were too quick and could have a negative impact on the Japanese economy.
Weekly Trades
The yen is down 0.75% so far against the greenback, on track for the third weekly loss in a row.
Recession
Earlier Japanese data showed GDP contracted 0.1% in the fourth quarter of 2023, while analysts expected a 0.2% growth rate.
The data shows the ongoing pressures on the world’s now fourth largest economy, and the continuous need for aggressive policy easing.
US Yields
Otherwise, US 10-year treasury yields rose 0.5%, resuming gains and boosting the greenback.
The developments came after bullish remarks from Fed officials and strong US data, which hurt the odds of early rate cuts in March and May.
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