The yen stabilized at the start of trading in Asia on Monday, following suspected intervention by authorities to strengthen the currency last week.<\/p>\n
Wilatlak Villette | Moment | Getty Images<\/p>\n
The yen stabilized at the start of trading in Asia, strengthening slightly after a few choppy sessions following suspected\u00a0intervention\u00a0by authorities to strengthen the currency last week.<\/p>\n
The yen<\/a>\u00a0edged up 0.1% to 156.885 against the dollar, after the Japanese currency appreciated 1.4% during the past month – a gain almost entirely attributable to the move on Thursday after authorities were widely suspected to have stepped in.<\/p>\n Tokyo officials declined to confirm whether they had intervened, but sources told Reuters the authorities did undertake yen-buying activity for the first time in two years.<\/p>\n Analysts questioned whether unilateral intervention, the third such effort in the past four years, would prove effective.<\/p>\n “The primary focus will be whether further intervention occurs, noting that Japan is closed for the Golden Week holiday and there will be thinner liquidity during this time,” said Mahjabeen Zaman, head of FX research at ANZ Bank in Sydney.<\/p>\n “And more importantly, whether the U.S. will join Japan’s efforts in supporting the yen,” she added. “If the yen weakens further, you could argue that the likelihood of bilateral intervention increases.”<\/p>\n Markets remained cautious at the start of trading after President Donald Trump said the U.S. would start an effort on Monday morning to\u00a0free ships\u00a0stranded in the Strait of Hormuz as a “humanitarian gesture” to aid neutral countries in the U.S.-Israeli war with Iran.<\/p>\n The U.S. dollar index<\/a>, which measures the greenback’s strength against a basket of six currencies, was flat at 98.144.<\/p>\n The Australian dollar<\/a>\u00a0was up 0.1% at $0.7211, while its kiwi<\/a> counterpart advanced 0.2% to $0.5905.<\/p>\n The\u00a0Reserve Bank of Australia\u00a0is due to announce its next policy decision on Tuesday, with the majority of analysts polled by Reuters expecting a hike in the cash rate to 4.35%. Last week, Australia’s top two grocers warned of\u00a0growing price pressures\u00a0as the Iran war drives up fuel and raw material costs for suppliers.<\/p>\n The euro<\/a>\u00a0was up 0.1% at $1.1730 after German Chancellor Friedrich Merz sought to\u00a0downplay\u00a0a rift with Trump after a planned troop drawdown was announced. The country’s\u00a0economy ministry\u00a0said on Sunday that Berlin is also in touch with the\u00a0European\u00a0Commission as it holds talks with Washington, after Trump said on Friday he would increase\u00a0tariffs\u00a0on cars and trucks from the EU to 25%.<\/p>\n The British pound<\/a>\u00a0was up 0.1% at $1.3586.<\/p>\n Bitcoin<\/a>\u00a0was down 0.1% at $78,824.22, while ether<\/a>\u00a0nudged 0.1% higher to $2,331.95.<\/p>\n