The yen gained slight support after the Japanese administration increased intervention to stop the currency’s decline. However, the yen remains near a 10-month low and is expected to record a weekly loss of 1.5%. Fiscal concerns following Prime Minister Takaichi’s large stimulus package continue to be the main pressure.
Tokyo approved a 21.3 trillion yen stimulus package, while analysts warned that the risk of FX intervention is increasing and expected to be temporary. The yen also remains near historic lows against the euro.
The US dollar is now on track for its biggest weekly gain in six weeks as markets remain divided over the possibility of a Fed rate cut in December. The delayed US jobs report delivered mixed readings, but dovish comments from New York Fed President John Williams increased bets on a rate cut.
The euro and pound declined throughout the week, while the Aussie and Kiwi stabilized after falling amid risk aversion sentiment. The US dollar index is approaching a five-and-a-half-month high.
In the crypto market, Bitcoin remains under pressure and hit a seven-month low, in line with global risk aversion weighing on speculative assets.
