The Japanese yen paired with the US dollar remains in a vulnerable state. The current USD/JPY exchange rate is at 147.82.
The market is closely watching for potential interventions by the Bank of Japan and the government. Yesterday, one of the monetary policymakers, Takehiko Nakao, emphasized the need for regulatory intervention.
Nakao suggested that a prolonged period of accommodative monetary policy might further weaken the JPY's standing.
Nakao drew from past experience with currency interventions dating back to 2011.
In 2022, Japan allocated approximately 9 trillion yen (equivalent to 60.88 billion USD) for intervening in currency fluctuations and arresting the depreciation of the yen.
Currently, the JPY is facing pressure, partly due to the strengthening position of the US dollar.