Yen Extends Gain as PM Warning Points to Intervention Risk

The yen extended its gains, climbing as much as 1.5% against the dollar, after comments from Japanese officials fueled speculation that the government may intervene in the market to prevent the currency from resuming its slide.

The yen advanced to as much as 153.31 per dollar, the strongest since early-November, following a warning from Prime Minister Sanae Takaichi that the government is prepared to prevent any “highly abnormal” market moves. That came after signs on Friday that the US could take the rare step of joining Japan in defending the yen. Japanese stocks fell, with the Nikkei 225 Stock Average closing 1.8% lower, and most bonds gained.