The Japanese yen traded near 160 per dollar on Friday after surging as much as 3.3% in the previous session, with markets suspecting Tokyo intervened once again to support the currency ahead of the Bank of Japan’s policy decision.
Nikkei reported that Japanese authorities entered the foreign exchange market and that US officials requested dollar-yen rate quotes.
Japanese Finance Minister Satsuki Katayama has repeatedly signaled that authorities stand ready to intervene at any time, while noting that Japan remains in close communication with the US on foreign exchange issues.
The yen had weakened to a 40-year low earlier this month under pressure from elevated energy costs, fiscal concerns, and wide interest rate differentials.
Investors now await the BOJ’s policy decision later today, with the central bank widely expected to leave interest rates unchanged following its June rate hike.