Japanese Yen Falls to Six-Month Low

The Japanese yen has fallen to its lowest level since July 2024, trading at approximately 158.42 against the dollar, as retail investor outflows and speculative pressures weigh heavily on the currency. Finance Minister Katsunobu Kato expressed concerns over excessive currency movements, indicating that the government may intervene if necessary. Analysts attribute the yen's decline to a widening US-Japan yield differential and a lack of near-term rate hike expectations from the Bank of Japan (BOJ), which has postponed its rate hike forecasts. BOJ Governor Kazuo Ueda has stated that any rate increases would depend on economic conditions, further adding to market uncertainty. As traders await critical US economic data, the yen remains under pressure, with some strategists suggesting that intervention fears could provide some support. Overall, while Japan's PMI indicates modest growth, it is insufficient to alleviate concerns regarding the BOJ's monetary policy and the yen's stability.