Japanese Finance Minister Satsuki Katayama stated on Friday that recent yen movements have been significantly driven by speculative trade. This comment came as the currency rebounded following reports of the Strait of Hormuz being open to commercial vessels.
The dollar weakened against several currencies, including the yen, as traders adjusted their positions. Katayama indicated that market reactions are natural given the speculative nature of recent trading.
The yen briefly reached 158.18 against the dollar, a level near past intervention points. A weaker yen increases import costs and contributes to inflation, a concern for Japanese policymakers. Japan and the U.S. have agreed to enhance communication regarding exchange rates.