Yen Extends Losses Despite Verbal Intervention

2026-04-24 02:37 By Jam Kaimo Samonte 1 min. read

The Japanese yen weakened toward 160 per US dollar on Friday and was on track to decline nearly 1% for the week, even as authorities issued renewed warnings of potential intervention and domestic inflation picked up.

Finance Minister Katayama stated that officials retain a “free hand” to intervene in currency markets to support the yen, adding that authorities are prepared to take “decisive” action against speculative moves.

On the data front, Japan’s core inflation accelerated for the first time in five months, driven by higher energy costs, though it remained below the Bank of Japan’s 2% target.

The BOJ is widely expected to keep interest rates unchanged next week as policymakers assess rising uncertainties tied to the Middle East, where stalled US-Iran peace talks and ongoing blockades in the Strait of Hormuz continue to elevate inflation and growth risks.

Rising energy prices linked to the Iran conflict have weighed on the yen, reflecting Japan’s heavy reliance on imported oil.



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Yen Extends Losses Despite Verbal Intervention
The Japanese yen weakened toward 160 per US dollar on Friday and was on track to decline nearly 1% for the week, even as authorities issued renewed warnings of potential intervention and domestic inflation picked up. Finance Minister Katayama stated that officials retain a “free hand” to intervene in currency markets to support the yen, adding that authorities are prepared to take “decisive” action against speculative moves. On the data front, Japan’s core inflation accelerated for the first time in five months, driven by higher energy costs, though it remained below the Bank of Japan’s 2% target. The BOJ is widely expected to keep interest rates unchanged next week as policymakers assess rising uncertainties tied to the Middle East, where stalled US-Iran peace talks and ongoing blockades in the Strait of Hormuz continue to elevate inflation and growth risks. Rising energy prices linked to the Iran conflict have weighed on the yen, reflecting Japan’s heavy reliance on imported oil.
2026-04-24
Yen Holds Decline as BOJ Policy Outlook in Focus
The Japanese yen traded around 159.5 per dollar on Wednesday, holding recent losses as investors weighed the Bank of Japan’s policy outlook ahead of its meeting next week. Reports suggest the central bank is likely to keep interest rates unchanged this month while assessing the economic impact of the Middle East conflict, though it may signal a possible return to policy normalization as soon as June. The BOJ is also expected to lift inflation forecasts while lowering growth projections, reflecting higher energy costs and broader headwinds linked to the Iran war. On the data front, Japanese exports rose for a seventh straight month, supported by strong demand from China and ASEAN economies. The yen also faced additional pressure from a stronger US dollar after plans for a second round of US-Iran peace talks collapsed, though President Donald Trump extended the current ceasefire.
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Yen Weakens on BOJ Policy Uncertainty
The Japanese yen slipped toward 159 per dollar on Tuesday, staying under pressure amid growing uncertainty over the Bank of Japan’s policy outlook. Reports indicate the central bank is likely to hold rates steady this month while evaluating the economic fallout from the Middle East conflict, though it could signal a resumption of policy normalization as early as June. The BOJ is also expected to raise inflation forecasts while trimming growth projections, reflecting elevated energy costs and broader headwinds from the Iran war. Meanwhile, markets remain focused on US-Iran peace negotiations, with both sides expected to send delegations to Islamabad for a second round of talks before the current ceasefire expires. Oil prices and the dollar eased, providing some relief to the yen given Japan’s heavy dependence on energy imports from the Middle East.
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