The yen yesterday rose against the US dollar after Japanese Minister of Finance Satsuki Katayama said Tokyo would not rule out any options to counter weakness in the local currency, including coordinated intervention with the US.
The yen slid to a year-and-a-half low earlier in the week. It was last up 0.3 percent to ￥158.13, but still set for a third consecutive week of declines against the greenback.
The dollar index, which measures the greenback against a basket of peers, was poised for a third consecutive weekly gain after positive US economic data pushed out expectations for rate cuts by the US Federal Reserve.
Photo: Reuters
Katayama said a joint statement signed with the US in September last year “was extremely significant and included language on intervention.”
Markets in Japan are on edge before a pivotal week that would see Japanese Prime Minister Sanae Takaichi dissolve parliament to set up a snap election while the central bank meets on policy.
Some Bank of Japan policymakers see scope to raise interest rates sooner than markets expect to contend with the weak yen, sources said.
The Japanese currency has fallen this week on expectations that fiscally dovish Takaichi might have greater leeway to introduce more stimulus pending the snap election expected early next month.
“Lower house dissolution reports are fuelling JPY [Japanese yen] depreciation pressure and we have further extended our long USD/JPY target, but potential intervention risk could cap the upside,” said Shinichiro Kadota, head of Japan forex and rates strategy at Barclays Tokyo.
Barclays said in a note that Japan’s Liberal Democratic Party might be in for a tight race, as the opposition strengthens its coordination and monetary policy could change depending not only on election results, but also on forex reactions.
The dollar index’s rally paused yesterday, with the currency edging 0.07 percent lower at 99.28, but still on track for a 0.15 percent advance this week.
The US dollar rose on Thursday after data showed US weekly jobless claims unexpectedly fell, likely reflecting challenges adjusting data for seasonal fluctuations.
Fed funds futures have pushed back expectations for the next rate cut to June on the back of improving employment data and as central bank policymakers expressed concern about inflation.
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
Taiwan’s food delivery market could undergo a major shift if Singapore-based Grab Holdings Ltd completes its planned acquisition of Delivery Hero SE’s Foodpanda business in Taiwan, industry experts said. Grab on Monday last week announced it would acquire Foodpanda’s Taiwan operations for US$600 million. The deal is expected to be finalized in the second half of this year, with Grab aiming to complete user migration to its platform by the first half of next year. A duopoly between Uber Eats and Foodpanda dominates Taiwan’s delivery market, a structure that has remained intact since the Fair Trade Commission (FTC) blocked Uber Technologies Inc’s
RSS