Yen gets a lift as verbal intervention picks up, dollar heads for weekly rise

Currency Market Overview - The yen received support as Japanese officials increased verbal intervention to address its decline, while the dollar is on track for its largest weekly rise in six weeks [1][2] - The yen rose 0.4% to 156.82 per dollar, although it remained near a 10-month low of 157.90 and is expected to lose 1.5% for the week [2] - The yen has fallen approximately 6% since Prime Minister Sanae Takaichi's election on October 4, with concerns over Japan's fiscal position due to her spending policies [3] Government Intervention - Japanese Finance Minister Satsuki Katayama indicated that intervention is a possibility to manage excessive volatility, which has heightened trader alertness for potential yen buying [1][2] - The last significant intervention by Tokyo involved spending 5.53 trillion yen (nearly $37 billion) in July 2024 to stabilize the yen from 38-year lows [4] Economic Stimulus - Takaichi's cabinet approved a substantial economic stimulus package of 21.3 trillion yen ($135.4 billion), aimed at bolstering the economy [3] Broader Market Context - The dollar is set for a weekly gain, with mixed signals regarding potential Federal Reserve rate cuts, influenced by a delayed U.S. nonfarm payrolls report [6] - New York Fed President John Williams suggested that the central bank could still consider rate cuts in the near term, which has led to increased market speculation about a rate cut next month [7]