The yen fell to a nine-month low against the dollar on Wednesday, inciting concerns from Japanese policymakers. Despite Japanese Finance Minister Satsuki Katayama’s attempts to verbally stabilize the currency, the yen hit 154.91 per dollar. Katayama stressed the necessity of steady currency movements reflecting fundamentals.
Market experts suggest that Japanese authorities may need direct intervention to bolster the yen. Since early October, the yen has dropped 4.5%, influenced by new fiscal policies under Prime Minister Sanae Takaichi and an anticipated resolution to the U.S. government shutdown.
In the U.S., a prospective end to the government shutdown is expected to restore crucial economic data for investors and the Federal Reserve. The dollar marginally recovered, with traders eyeing the upcoming Federal Open Market Committee meeting for potential interest rate decisions.
(With inputs from agencies.)
