Japanese Yen Extends Rally

2025-12-24 01:51 By Joshua Ferrer 1 min. read

The Japanese yen strengthened to around 156.7 per dollar on Wednesday, marking its third straight session of gains, as traders remained focused on potential intervention from authorities.

Finance Minister Katayama’s recent comments highlighted Tokyo’s readiness to act against excessive yen movements, arresting the currency’s declines.

Year-end trading conditions and sharp moves away from fundamentals make the risk of official action particularly elevated.

In addition, October BOJ meeting minutes suggested policymakers are debating whether rates should continue rising toward neutral levels, with higher rates seen as a tool to support long-term economic and price stability.

Last Friday, the BOJ delivered a widely anticipated rate hike, but Governor Ueda’s remarks were viewed as less hawkish than some had hoped, leaving yen under pressure in the aftermath.

Markets now await Tokyo’s finalization of the FY2026 budget at roughly JPY 122 trillion, with cabinet approval possible by Friday.



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