30.09.202602:06:55UTC+00Yen Set for Monthly Advance

The Japanese yen strengthened past 157 per dollar on Wednesday and was on track to end the month higher, as traders reacted to a series of verbal warnings from officials underscoring Tokyo’s determination to support the currency. Finance Minister Satsuki Katayama said Japan and the United States would maintain close communication in their efforts to preserve stability in foreign exchange markets amid growing concern over the yen’s weakness. She also noted that President Donald Trump had voiced concern about the yen during a meeting with Prime Minister Sanae Takaichi. Japan’s top currency official, Atsushi Mimura, said this week that the prime minister and finance minister, together with US counterparts, had delivered a “very clear” message on the issue of excessive currency depreciation. Even so, the yen remained under pressure from wide interest-rate differentials between the US and Japan, as the Federal Reserve’s tightening outlook continued to overshadow the Bank of Japan’s rate increases.