The Japanese yen slipped past 156.5 per dollar on Monday, giving back part of the prior session’s gains as traders continued to weigh a series of verbal interventions from authorities aimed at slowing the currency’s slide. On Sunday, Takuji Aida, an adviser to Prime Minister Sanae Takaichi, said Tokyo can actively intervene in currency markets to offset the negative economic effects of a weak yen. Bank of Japan Governor Kazuo Ueda and Finance Minister Satsuki Katayama also commented on the yen’s weakness last week, fueling speculation that authorities could step in if the currency approaches 160 per dollar, in line with previous intervention levels. The yen fell to ten-month lows last week as Takaichi’s massive stimulus package raised concerns about Japan’s fiscal health, while her administration also backed keeping interest rates low.
