Yen Gains Amid Intervention Speculations

The Japanese yen strengthened slightly against the U.S. dollar due to potential intervention from Japanese officials amidst low trading volumes before the Christmas holiday. Despite a rate hike by the Bank of Japan, traders remain cautious as Finance Minister Satsuki Katayama hinted at possible action to stabilize the currency.

The Japanese yen made a slight gain against the U.S. dollar on Wednesday, with traders focusing on the likelihood of intervention by Japanese officials amidst the yen's weakening. Light trading volumes ahead of the Christmas holiday added to the uncertainty.

Japan's Finance Minister Satsuki Katayama indicated that the government retains the flexibility to address excessive yen movements. Her remarks provided some support for the yen, which appreciated by 0.25% to 155.84 per dollar.

The dollar showed mixed performance against other currencies as futures traders anticipated rate cuts by the Federal Reserve next year. In cryptocurrencies, bitcoin dipped slightly, reflecting broader market trends.

(With inputs from agencies.)