In Tokyo trading on Friday, the US dollar continued to hold its strength above the 161 yen level, at times trading in the mid-161 yen range. The foreign exchange market showed little reaction to the warning from Japanese Finance Minister Satsuki Katayama that the government would take 'decisive' action if speculative moves weaken the yen.
Speaking at a regular press conference, Minister Katayama emphasized that the Japanese government is closely monitoring market developments and is ready to intervene if necessary. However, this warning appeared insufficient to shake the greenback's upward trajectory.
Analysts noted that the interest rate differential between the US and Japan remains the key factor supporting the US dollar, with the Federal Reserve maintaining a hawkish monetary policy stance.
Meanwhile, the yen continues to face depreciation pressure, particularly after the Bank of Japan (BOJ) decided to keep its benchmark interest rate unchanged at its recent policy meeting.
