Yen Rallies Past 157 Against Dollar Following US-Japan Intervention Warning From Mimura

The Japanese yen rallied sharply across major currencies, driving USD/JPY down through 157 and testing support near 156.50. The surge followed warnings from Japan's Vice Finance Minister for International Affairs Atsushi Mimura, who told markets to take coordinated Japan-US warnings on yen undervaluation at face value and dismissed concerns regarding Tokyo's intervention funding capacity. Despite earlier Bank of Japan rate hikes to 1.25%, the yen had faced persistent weakness. Broader foreign exchange markets remain influenced by elevated US Treasury yields, with the 10-year yield holding above 5.2% and the 2-year near 4.9%.