Yen rallies to two-week highs under scrutiny by Japanese authorities

Yen rose in Asian trade on Friday against a basket of major rivals, extending gains for the second straight day against the US dollar and hitting a two-week high amid warnings from Japanese authorities about the weak state of the local currency.

Yen gained ground on haven demand today amid concerns about worsening geopolitical tensions and the spread of conflict in the Middle East.

US 10-year treasury yields tapered off as well, in turn underpinning Japanese bonds and the yen. 

USD/JPY

USD/JPY fell 0.35% to 150.80 yen, the lowest since March 21, with a session-high at 151.34. 

Yen closed up 0.25% against the dollar on Thursday, the second profit in three days off 34-year lows. 

Fresh Warnings about the Weak Yen 

Japan’s finance minister Shinuchi Suzuki asserted on Friday the Japanese government’s intent to intervene against the yen's sharp decline. 

The Asahi paper said on Friday that Bank of Japan governor Kazuo Ueda said the BOJ will react through monetary policies if the weaker yen impacted inflation and wages. 

US Treasury Yields 

US 10-year treasury yields fell 0.2% on Friday on track for the third profit in a row, hurting investments in the dollar. 

Investors continue to shun high-risk investments amid a split in the opinions of Fed officials on the future of US interest rates. 

Now traders await crucial US payrolls data later today for March to gather more clues on the future of US monetary policy and interest rates.