Yen Strengthens as Japan Steps Into FX Market

2026-05-01 01:01 By Jam Kaimo Samonte 1 min. read

The Japanese yen traded around 157 per US dollar on Friday after surging as much as 3% to 155.5 overnight, as Tokyo intervened in the currency market hours after officials delivered a “final” warning to traders against selling the yen.

Although the Finance Ministry has not formally confirmed intervention, the sharp and sudden move led traders to widely attribute the action to government support.

Market participants are now assessing the likelihood of additional steps as the government typically conducts more than one round of yen purchases.

Earlier in the week, the yen had weakened beyond the psychologically important 160 per dollar threshold, a level that previously triggered official action in July 2024.

The currency moves come in the context of recent policy decisions by both the Bank of Japan and the Federal Reserve, which held interest rates steady, maintaining a wide US–Japan rate differential that continues to favor dollar strength and pressure the yen.



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