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Japan's yen warning lifts battered currency from 2-decade lows

reuters.com · 06/10/2022 03:31
Japan's yen warning lifts battered currency from 2-decade lows

- The Japanese yen rallied sharply against the dollar on Friday after policymakers repeated warning on its sliding yen, but kept silence on the chance of currency intervention.

In early London trade, the U.S. dollar was down as much as 0.7% and was last trading 0.6% lower at 133.55 yen JPY=EBS.

Japanese Finance Minister Shunichi Suzuki on Friday refrained from commenting on the possibility of government intervention in the foreign exchange market to stem a weak yen, while maintaining his warning against any rapid fluctuations.

The latest jaw-boning came a day after the yen hit a fresh 20-year low against the dollar and a seven-year trough against the euro on expectations the Bank of Japan (BOJ) will continue to lag behind other major central banks in exiting stimulus policy. nL1N2XX09O

The Bank of Japan's commitment to super low interest rates has weighed on the yen, driving it down 15% against the U.S. dollar since early March to a 20-yr low of 134.55 this week.

(Reporting by Alun John in Hong Kong and Dhara Ranasinghe in London; Editing by Saikat Chatterjee)

((Dhara.Ranasinghe@thomsonreuters.com; +442075422684;))