Yen on intervention watch; Asia shares creep higher

The yen remained near its weakest levels in decades on Thursday, but the threat of intervention by Japanese authorities prevented further decline. Asian stocks saw gains ahead of a crucial U.S. inflation report, while markets awaited Friday’s release of the U.S. core personal consumption expenditures (PCE) price index data, a key measure of inflation for the Federal Reserve.

Japan’s monetary authorities convened an emergency meeting on Wednesday to address the yen’s weakness, signaling readiness to intervene in the currency market to prevent disorderly and speculative movements. Verbal warnings from officials, including Finance Minister Shunichi Suzuki, emphasized the commitment to take decisive action against excessive currency fluctuations.

Despite these efforts, the yen remained relatively stable, trading at around 151.35 per dollar after hitting a 34-year low of 151.975 in the previous session. The focus remains on potential intervention measures and their effectiveness in stabilizing the currency amid ongoing market volatility.

Source: Reuters