Yen fights losses despite dovish BoJ mood

The Japanese yen held modest gains in early Asian trade, supported by a softer US Dollar that kept downward pressure on the USDJPY pair. Caution crept into the market after Japans Finance and Economy Ministers signaled discomfort with recent currency moves, subtly reviving intervention concerns and offering the yen some stability. Even so, the broader tone for the currency remains subdued, with Prime Minister Sanae Takaichi reaffirming her preference for low rates and close coordination with the Bank of Japan, dampening hopes of an early policy shift. Meanwhile, the dollar index hovered near 99 marking a second straight weekly decline as investors brace for a backlog of US data following the government reopening, which could highlight emerging economic softness. Against this backdrop, the yen enjoys brief support but continues to trade near its nine-month low.

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