Overview
- The yen hovered around ¥157 per dollar on Tuesday as the U.S. dollar firmed on Middle East war fears, according to Reuters.
- The currency briefly jumped to about ¥155.7 on Monday during Japan’s Golden Week holiday, when thin local trading can magnify moves, in a burst traders read as fresh support.
- Bank of Japan figures last week suggested Tokyo spent roughly ¥5.48 trillion, or about $35 billion, after dollar‑yen broke past the politically sensitive ¥160 level.
- Officials have not confirmed any action, but banks say authorities are likely to resist a push back toward ¥160 and Goldman Sachs estimates Japan has room to repeat operations at last week’s size many times.
- Analysts warn gains may be short‑lived because U.S.–Japan interest rate gaps remain wide and oil above $100 raises Japan’s import bill, keeping pressure on the yen.