Yen strengthens past 157 against dollar as government warnings support

Yen: The yen is Japan’s national currency and a major global reserve and trading currency. In the reported move, it strengthened against the U.S. dollar as Japanese officials maintained warnings about excessive weakness and market positioning shifted around quarter-end. Dollar: The U.S. dollar is the world’s primary reserve currency and the reference currency in the USD/JPY exchange rate. It weakened against the yen in the reported session as intervention concerns and quarter-end flows supported demand for Japan’s currency. Market flows: Quarter-end portfolio adjustments and repatriation-related flows can temporarily support the yen independently of longer-term exchange-rate fundamentals. Monetary policy: The Bank of Japan recently raised its policy rate to its highest level in decades, but dissent and limited forward guidance have made the yen’s reaction volatile. Intervention risk: Japanese currency officials have recently said they remain on heightened alert over exchange-rate movements and have preserved the option of yen-buying intervention.