Additionally, prospects of the Bank of Japan abandoning its negative interest-rate regime increased after Governor Kazuo Ueda said it’s possible the central bank will have enough information and data by the year-end to judge if wages will continue to rise, according to an interview with the Yomiuri newspaper.
The currency strengthened as much as 0.8% to 146.71 per dollar in early trading Monday after Biden asserted that China’s economic problems have diminished its capacity to invade Taiwan. Biden said Xi “has his hands full right now.” Xi has yet to respond. The comments are likely stoking haven demand, coupled with concern the yen is nearing levels that may see intervention by officials, said Marvin Loh, a strategist at State Street in Boston. It’s “a bit of a jittery environment out there,” he said.
Biden’s comments follow Beijing’s move last week to ban the use of iPhones for state-owned enterprises — representing a blow to Apple Inc. and broadening previously announced restrictions that targeted only government agencies. Meantime, traders have been on tenterhooks this month as Japanese officials said they won’t rule out any measures to address excessive currency moves, the first steps toward intervention. The yen fell as low as 147.87 per dollar for a second straight day on Friday, the weakest since November and near levels officials last stepped in to prop up the currency.Most Read from Bloomberg Businessweek