The Japanese yen rose in Asian trade on Tuesday against a basket of major rivals, resuming its recovery from four-month lows against the US dollar following warnings by Japan’s finance minister.
The increasing verbal interventions by Japanese authorities show their discontent with the yen’s steep decline against major rivals, approaching multi-decade lows.
JPY/USD
JPY/USD fell 0.15% to 151.21, with a session-high at 151.44, after closing up 0.15% on Friday away from four-month lows at 151.86.
Japan’s Finance Minister
Japan’s finance minister Shunichi Suzuki said on Tuesday the government could intervene to prevent further yen declines.
Also, Japan’s chief currency diplomat, Masato Kanda, said on Monday that authorities are monitoring the forex markets closely and will intervene if needed.
Why’s the Yen Declining after the Rate Hike?
The yen tumbled over 1% since the Bank of Japan raised interest rates last week, as the BOJ back then took a bearish stance on future policy moves.
Yen Outlook
The Commonwealth Bank’s forex analysts said that 152 will likely be a very strong resistance facing the JPY/USD pair as the Japanese government prepares for intervention.
They believe that traders are highly conscious of the Japanese government’s standby position to support the yen at such levels in the months to come.
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