The GBP/JPY currency pair settled above Friday’s low of 213.53, its weakest level since May 28th, due to renewed strength in the Japanese Yen amid elevated concerns that authorities could step in to support the currency.
Japan’s Finance Minister Satsuki Katayama said that policy makers remained fully ready to take “appropriate action” in the foreign exchange market if conditions require it.
Signs of potential official activity in currency markets have intensified as market observers focus on a notable decline in Japan’s financial buffers.
Japan’s foreign reserves fell by USD 77.11 billion in May, ending the month at USD 1.31 trillion compared with USD 1.38 trillion previously, reaching their lowest level since July last year.
Within the reserves, foreign currency holdings decreased to USD 1.09 trillion, including USD 931.68 billion in securities and USD 162.24 billion in deposits.
In the meantime, soft domestic housing data in the United Kingdom has not provided a meaningful lift to the Pound.
New figures from the Halifax House Price Index released on Friday showed an unexpected setback in May. Prices fell 0.1%, marking a fourth consecutive monthly drop and contradicting market expectations of a 0.1% increase.
On a yearly basis, house prices rose 0.5%, slightly above the 0.4% rate recorded in April, but well below the 1% surge anticipated by consensus forecasts.
The minor Forex pair lost 0.11% for the week.
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