Yen posts best day in two weeks as intervention risk may cap weakness

The yen posted its steepest daily gain in over two weeks on Friday. The yen strengthened as much as 0.6% to 157.95 per dollar. Finance Minister Satsuki Katayama said Donald Trump raised concerns about the weak yen directly with Prime Minister Sanae Takaichi during a meeting in New York this week. Katayama said she will keep coordinating with US Treasury Secretary Scott Bessent. Bessent has separately signaled support for a stronger yen. Strategist Moh Siong Sim said intervention risk should put a ceiling on further yen weakness. Sim said the yen may be nearing a turning point because Trump's concerns point to deeper US-Japan coordination to support the currency. Renewed dollar strength pushed USD/JPY back toward 160 after an earlier yen rally linked to bets on BOJ tightening. Japan and the US carried out their first coordinated yen-buying intervention since 1998 this summer. Japan spent a record 15.4 trillion yen, about $97.4 billion, defending the currency in the month through August 26. Officials have not named a trigger level. They have focused instead on the speed and disorder of the yen's swings. The market treats 160 as the threshold where intervention becomes likely again.