The yen outperformed its Group-of-10 peers on Tuesday, strengthening after Japan’s Finance Minister Satsuki Katayama said in an interview that the government has a “free hand” to take bold action against the currency if its moves are out of line with fundamentals.
Japan’s currency appreciated as much as 0.7% to 155.91, rebounding from about a one-month low that it hit following the Bank of Japan’s rate decision last week. Meanwhile, the dollar extended its decline versus major peers for a second day.