Investors remain cautious amid speculation Tokyo may act to prop up the yen after it hit multi-decade lows against the dollar and pound.
The yen traded at 161.93 per dollar, up 0.1% but still close to last week’s 40-year low of 162.84. Against the pound, it hit 217.20, its weakest since 2007, before paring losses. Traders are on alert for potential intervention by Japanese authorities, though no action has been taken despite recent speculation.
The currency found temporary support late last week as markets priced in a possible shift in Japan’s strategy. However, analysts noted the yen’s sudden rebound on Thursday lacked clear signs of official intervention. Meanwhile, the dollar steadied after recent declines, with investors scaling back U.S. rate hike bets following weaker-than-expected jobs data.
The euro dipped 0.1% to $1.1431, while sterling rose to a three-week high of $1.3401 before easing. The dollar index held at 100.93, up marginally.