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24.04.202602:37:25UTC+00Yen Extends Losses Despite Verbal Intervention

The Japanese yen weakened toward 160 per US dollar on Friday and was poised to lose nearly 1% for the week, despite renewed official warnings of possible intervention and a pickup in domestic inflation. Finance Minister Katayama reiterated that authorities retain a “free hand” to step into currency markets to support the yen and emphasized they stand ready to take “decisive” action against speculative moves.

On the data front, Japan’s core inflation rate accelerated for the first time in five months, fueled by higher energy costs, although it still remained below the Bank of Japan’s 2% target. The BOJ is widely expected to leave interest rates unchanged at its meeting next week as policymakers weigh mounting uncertainties stemming from the Middle East, where stalled US-Iran peace talks and persistent disruptions in the Strait of Hormuz continue to heighten both inflation and growth risks. Rising energy prices tied to the Iran conflict have further pressured the yen, underscoring Japan’s heavy dependence on imported oil.



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