Yen's Resurgence: Currency Market on Alert

The Japanese yen found relief, recovering slightly against the U.S. dollar amidst profit-taking. The market watches as the yen remains weak, with potential intervention by Japanese authorities in focus. Meanwhile, the global currency market reacts to changing economic policies and central bank decisions.

The Japanese yen gained some relief on Tuesday, trading stronger at 154.47 per dollar, due to a pullback in the U.S. currency which faced profit-taking after a notable rally. This recovery followed a decline after Bank of Japan Governor Kazuo Ueda maintained his stance without signaling any impending rate hikes for December.

Despite the yen weakening by 7% since October and breaching the 156 per dollar mark for the first time since July, intervention by Japanese authorities remains a possibility. Finance Minister Katsunobu Kato reiterated the government’s commitment to addressing any excessive foreign exchange movements appropriately.

Globally, the dollar eased against a basket of currencies. While the euro rebounded and the Australian dollar maintained gains, the focus remains on potential policy changes by the Federal Reserve and speculation surrounding U.S. trade tariffs affecting economic growth.

(With inputs from agencies.)