Yen bounces back, markets eye 160 for potential intervention trigger

The Japanese yen steadied around 157.2 per dollar on Friday, halting its recent decline after Finance Minister Satsuki Katayama suggested that Japan could intervene in the currency markets to curb excessive volatility. The yen, which had fallen to a 10-month low earlier in the week, remains vulnerable, with market watchers eyeing the 160 level as a potential trigger for fresh intervention. Japan's last foreign exchange market intervention was in July 2024, when the yen reached the 160 threshold. Meanwhile, Japan's core inflation held steady at 3.0% in October, above the Bank of Japans target, keeping alive expectations that the central bank could soon hike rates. On the other side of the Pacific, the U.S. dollar is poised for its best weekly performance in over a month, fueled by investor expectations that the Federal Reserve is unlikely to cut interest rates next month.

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