Market uncertainty over potential Japanese government action lifts the yen, though it remains weak against the dollar.
The Japanese yen (JPY) rose modestly against most major currencies but traded near 162.66 against the US dollar (USD) in European trading on Wednesday. Speculation about possible government intervention to support the yen drove the slight uptick, though no concrete steps have been announced.
Japan’s Finance Minister Satsuki Katayama stated the government would respond appropriately to currency movements as needed but avoided commenting on specific exchange rate levels. Meanwhile, new Bank of Japan (BoJ) board member Ayano Sato’s lack of dovish remarks on Tuesday further bolstered the yen, though she did not address interest rate expectations.
The yen showed relative strength against the Australian dollar but remained under pressure versus the greenback amid broader market caution.