Yen Set for Monthly Advance

The Japanese yen strengthened past 157 per dollar on Wednesday and was on track to finish the month higher, as traders responded to a series of verbal warnings from officials signaling Tokyo’s determination to support the currency. Finance Minister Satsuki Katayama said Japan and the US would maintain close communication as they seek to preserve stability in currency markets amid rising concerns over the yen’s weakness. She also said President Donald Trump expressed concern about the yen during a meeting with Prime Minister Sanae Takaichi. Japan’s top currency official Atsushi Mimura also said this week that the prime minister and finance minister, along with the US, had delivered a “very clear” message regarding excessive currency depreciation. Still, the yen remained under pressure from wide US-Japan interest-rate differentials, as the Federal Reserve’s tightening outlook continued to outweigh the Bank of Japan’s rate hikes.