Japan Signals Potential Yen Intervention Amid Speculative Pressure

As the yen approaches a critical intervention level, Japan's top currency officials warn against speculative trading and hint at possible market action.

• Japan raised interest rates for the first time since 2007, yet the yen continues to fall, trading near its weakest level this year.
• Officials attribute the yen's decline to well-anticipated policy changes, carry trades, and the lack of repatriation flows, rather than fundamental economic weaknesses.
• The yen's weakness benefits Japanese exporters but increases household import costs, raising concerns about living expenses.
• Japan's currency chief warns of taking action against excessive fluctuations and does not rule out direct market intervention.
• The threat of intervention has curbed the dollar's ascent, with authorities closely monitoring the situation and prepared to support the yen.

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