FX.co ★ Yen Weakens Despite Verbal Warning

The Japanese yen weakened toward 158 per dollar on Monday, snapping a three-day winning streak despite renewed verbal intervention from Tokyo. Finance Minister Satsuki Katayama reiterated that authorities stand ready to act if currency moves become excessive or disorderly, while stressing that Japan will maintain close coordination with the US on foreign exchange issues.

Investors are now focused on Japan’s wage data, due this week, for further clues about the Bank of Japan’s policy outlook. Last week, the BOJ left its benchmark interest rate unchanged at 1.25% but indicated that underlying inflation has finally reached its 2% target, potentially paving the way for a rate hike in December.

At the same time, safe-haven demand for the yen eased as the recent selloff in technology shares—driven by mounting concerns over artificial intelligence valuations—began to subside. Still, lackluster corporate earnings continued to pressure Japanese equities.