12.02.202602:30:21UTC+00Yen Extends Rally on Verbal Interventions

The Japanese yen climbed beyond 153 per dollar on Thursday, advancing for a fourth consecutive session on the back of renewed verbal intervention from Tokyo and growing optimism that Prime Minister Sanae Takaichi’s expansionary fiscal agenda will support domestic growth.

Japan’s top currency diplomat, Atsushi Mimura, said authorities remain highly vigilant over foreign exchange moves despite the yen’s recent appreciation, noting that stronger-than-expected US employment data has added to concerns. Finance Minister Satsuki Katayama likewise reiterated that the government stands ready to respond to currency fluctuations in line with the joint US–Japan statement.

The yen has gained nearly 3% this week following Takaichi’s decisive general election win, which has given her a firm mandate to pursue higher government spending and tax cuts. Market participants are increasingly betting that her policy platform will help underpin economic growth and, in turn, give the Bank of Japan more room to raise interest rates.