Yen holds firm as markets brace for election, with concerns about intervention lingering

Yen Stabilizes Amid Intervention Concerns Ahead of Japanese Election

The Japanese yen maintained its recent gains on Thursday, yet remained close to its lowest point in a year and a half. Investors are cautious about possible government intervention, especially as Japan approaches an election that could bring additional fiscal stimulus and keep the currency under pressure.

During early trading in Asia, the yen traded at 158.554 per US dollar, following a 0.4% increase the previous day after Finance Minister Satsuki Katayama issued another strong warning regarding the currency's movement. Despite this, the yen hovered just above Wednesday’s 18-month low of 159.45 and has weakened by nearly 5% since Prime Minister Sanae Takaichi assumed office in October, as market participants anticipate further policy changes.