FOREX-Yen's weekly loss puts more intervention on traders' radar

Since exiting a massive, decade-long stimulus in 2024, the BOJ has raised interest rates at a pace of roughly twice a year, a tempo it is considering picking up, according to sources familiar with the bank's thinking, Reuters reported on Friday.

Japan may also conduct more joint yen intervention "at any time", Tokyo's former top currency diplomat Mitsuhiro Furusawa told Reuters in an interview.

Markets have already bet on the Bank of Japan raising rates further and sooner than previously expected after U.S. Treasury Secretary Scott Bessent said Japan should reinforce intervention with policies and fundamentals that underpin the yen.

"It's not much of a surprise that the yen has retraced," said OCBC strategist Sim Moh Siong.

"Because for the intervention to change the yen trend, we need to see a more hawkish BOJ stance, which the market is trying to price in, but at the same time, we need validation," he said. "The onus is on BOJ to step up."