The Japanese currency JPY= found its footing at 162.98 per dollar after hitting a new 40-year low on Tuesday as investors weighed the measures officials would use to shore up the drooping currency.
Japanese Finance Minister Satsuki Katayama said on Wednesday that the government remains ready to take "decisive action" in currency markets if needed, while refraining from commenting on specific foreign-exchange levels.
The battered yen and soaring oil prices pushed Japan's imports to a record high in June, though exports also topped expectations, helped by booming demand from AI-related data centres - and a weak currency that continues to boost overseas sales.
The jump in oil prices is complicating the work of central bankers who have also grown cautious in offering an outlook for monetary policy. The European Central Bank is expected to announce its verdict on Thursday, and the U.S. Federal Reserve's decision is due next week.
Both central banks are expected to leave borrowing costs on hold this month, but traders expect borrowing costs in the U.S. and the euro zone to rise by at least 25 basis points each by the end of the year, LSEG-compiled data showed.
The yield on the U.S. 10-year Treasury note US10YT=RR was at 4.63%, unchanged on the day, after having touched a two-month high in the previous session. Gold XAU= rose 1.1% to a two-week high and was last at $4,120 an ounce.
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