The Japanese yen fell in Asian trading on Friday against a basket of major and minor currencies, remaining in negative territory for the third consecutive day against the US dollar, amid subdued trading conditions in the foreign exchange market due to the Good Friday holiday.

Japans finance minister issued a new warning to currency traders, reaffirming the governments readiness to act against speculation in foreign exchange markets, as volatility has increased significantly in recent periods.

With increasing signs of easing inflationary pressures on policymakers at the Bank of Japan, expectations for a Japanese interest rate hike in April have declined, as markets await further economic data from Japan.

Price Overview

Japanese yen exchange rate today: the US dollar rose 0.1% against the yen to 159.72, up from the session opening level of 159.59, after hitting a low of 159.43.

The yen ended Thursdays session down 0.5% against the dollar, marking its second consecutive daily loss, following more hawkish remarks from US President Donald Trump regarding the war with Iran.

US dollar

The dollar index rose about 0.1% on Friday, holding gains for the second consecutive session, reflecting continued strength in the US currency against a basket of global currencies.

Dollar buying as a preferred safe-haven asset resumed following US President Donald Trumps address to the nation on developments in the Iran war, during which he confirmed that the United States will continue the war with Iran in the coming weeks.

Later today, the US nonfarm payrolls report for March is due, a key indicator closely watched by the Federal Reserve in determining appropriate monetary policy tools for the worlds largest economy, and which will provide strong signals about the path of US interest rates over the course of this year.

Japanese authorities

Japans Finance Minister Satsuki Katayama issued a fresh warning to currency traders on Friday, reaffirming the governments readiness to act against speculation in foreign exchange markets amid rising volatility.

Katayama said in a regular press conference: we are seeing increased speculation in both crude oil futures markets and foreign exchange markets, and volatility has risen significantly.

She added that since exchange rate volatility resulting from these developments affects peoples livelihoods and the broader economy, the government stands ready to respond comprehensively on all fronts.

Japanese interest rates

Data released this week in Japan showed a slowdown in core inflation in Tokyo during March, in the latest sign of easing inflationary pressures on policymakers at the Bank of Japan.

Following the data, markets reduced pricing for the probability of a quarter-point rate hike by the Bank of Japan at the April meeting from 25% to 15%.

To reassess these expectations, investors are awaiting further data on inflation, unemployment, and wages in Japan.