Yen Falls After Japan Katayama's Intervention Warning

(RTTNews) - The Japanese yen weakened against other major currencies in the Asian session on Monday, after Japan's Finance Minister Satsuki Katayama remarks due to uncertainty over when the BoJ is expected to raise rates next.

Katayama stated earlier in the day that the government will take action against disruptive actions and that the Joint FX statement with the US is still in effect. Also, stated that the government is prepared to curb excessive or chaotic Yen weakness.

Katayama pointed out that Prime Minister Takaichi emphasized the significance of stable markets and stated that yen undervaluation is an issue.

After keeping interest rates at 1.25 percent, BoJ Governor Kazuo Ueda said on Friday that the central bank will continue to tighten monetary policy. Ueda stated during the press conference, "BoJ will continue to raise policy rate and adjust degree of monetary easing in response to economic activity, prices, and financial condition developments."

Asian stock markets traded mixed amid weakness in technology stock which mirrored their peers on tech-heavy Nasdaq on renewed concerns about the AI trade. Markets also keep an eye on the ongoing discussions between Qatari mediators and Iranian officials to end hostilities in the Middle East which could ease supply concerns.

In economic news, data from S&P Global showed that the manufacturing sector in Japan continued to expand in October, albeit at a slower pace, with a Performance of Manufacturing Index score of 53.3. That was down from 54.1 in September.

In the Asian trading today, the yen fell to an 8-day low of 176.66 against the euro, nearly a 2-week low of 211.65 against the pound and a 4-day low of 157.99 against the U.S. dollar, from Friday's closing quotes of 175.82, 211.00 and 157.55, respectively. If the yen extends its downtrend, it is likely to find support around 179.00 against the euro, 214.00 against the pound and 159.00 against the greenback.

Against the Swiss franc, the yen edged down to 191.83 from last week's closing value of 190.95. The yen is likely to find support around the 192.00 region.

Looking ahead, PMI reports from major European economies and the U.K. for October are due to be released in the European session.

In the New York session, U.S. and Canada PMI reports for October and U.S. construction spending for September are slated for release.