Trading was thinner than usual on Monday due to a holiday in Tokyo, leaving the yen stable at 156.53 per dollar. Japan’s currency has been under persistent pressure from ultra-low interest rates and loose fiscal policy, though it rebounded from recent 10-month lows after Finance Minister Satsuki Katayama intensified warnings about potential action to support the yen.
Market participants widely expect direct intervention if the yen slides into the 158–162 range against the dollar. Strategists at OCBC said the environment later in the week—particularly during Thanksgiving-thinned liquidity in London and New York hours—could create an opening for authorities to act. They cautioned that any move could trigger a sharp reaction in thin markets.
Hints of readiness emerged over the weekend as Takuji Aida, a private-sector member of a key Japanese government panel, told public broadcaster NHK that Japan can intervene if needed to cushion the economic impact of a weakening yen.
The euro was steady at $1.1520, gaining little traction despite an uptick in bets on a U.S. rate cut in December. Those expectations strengthened after New York Federal Reserve President John Williams suggested there is room to lower borrowing costs in the near term. The common currency also showed no immediate reaction to an updated Ukraine peace framework announced by Kyiv and Washington.
The dollar index hovered at 100.15, keeping most major currencies near recent lows.
In the U.K., sterling traded at $1.3097 as markets awaited Wednesday’s budget announcement. Finance minister Rachel Reeves is expected to balance support for slowing growth with assurances that Britain can stay aligned with its fiscal goals—an issue closely watched in the gilt market.
Across the Tasman, the New Zealand dollar held at $0.5609 after months of declines linked to a weakening economic outlook. Markets are overwhelmingly expecting the Reserve Bank of New Zealand to cut rates by 25 basis points on Wednesday, though expectations for additional easing next year remain divided.
The Australian dollar was slightly firmer at $0.6460 as investors looked to Wednesday’s CPI release—the first full monthly inflation reading. A Reuters poll suggests inflation may remain sticky at 3.6%, a development that could reduce the likelihood of further rate cuts by the Reserve Bank of Australia, according to Corpay strategist Peter Dragicevich.
In digital assets, cryptocurrency markets steadied over the weekend before fresh pressure on Monday pulled bitcoin down 1.5% to $86,700 during Asian trading hours.