The Japanese yen fell below 149 per dollar on Monday before recovering slightly, prompting top currency diplomat Atsushi Mimura to issue a strong warning against speculative trading in the foreign exchange market. The recent pressures on the yen were exacerbated last week when newly appointed Prime Minister Shigeru Ishiba and his economy minister Ryosei Akazawa advised caution concerning additional interest rate hikes in light of current economic conditions.
The currency's decline intensified following a stronger-than-expected US jobs rort released on Friday, which caused markets to dismiss the possibility of a 50 basis point rate cut from the Federal Reserve during November's meeting. Investors are now focusing on upcoming Japanese wage data this week to assess its potential impact on inflation and future monetary policy.
In recent trading, the USDJPY decreased by 0.4040 or 0.27%, closing at 148.2510 on October 7, down from 148.6550 in the previous session. Analysts and macroeconomic models predict the yen will trade around 146.10 by the end of the quarter, with further projections estimating a potential decline to 153.46 within the next 12 months.