Japan conducted rate checks in the FX market, Nikkei reports

Japanese ​authorities conducted rate checks in ‌the ​currency market, the Nikkei newspaper reported, triggering a sharp rise in the yen. The report came ‌after the currency's slide despite the Bank of Japan's decision on Friday to raise interest rates to a 31-year high of 1.25%.

Japan's Finance ‌Ministry, which directs intervention, did not immediately respond to a request ‌for comment. A rate check is when authorities ask banks for currency quotes to gauge market conditions, which traders view as a precursor for currency intervention.

The weak ⁠yen ​has become a ⁠headache for Japanese policymakers by boosting the cost of importing fuel and raw ⁠materials, thereby pushing up households' living costs and broader inflation. After Friday's rate-hike decision, ​BOJ Governor Kazuo Ueda has signalled the central bank's readiness to ⁠raise interest rates further to forestall the risk of too-high inflation, although the move has ⁠failed ​to prop up the currency.

Finance Minister Satsuki Katayama said on Friday Japanese authorities would not hesitate to conduct further ⁠coordinated exchange-rate intervention. Japan and the US carried out a rare joint yen-buying intervention ⁠on July ⁠31, signaling their determination to prevent a selloff in the yen and Japanese government bonds from spilling over ‌into global ‌markets.