Traders weigh the risks of Japanese authorities intervening in the currency market as the yen stabilizes near a 40-year low.

According to the Securities Times APP, the Japanese yen strengthened slightly on Friday, as traders remained cautious about the risk of intervention in the foreign exchange market by the Japanese authorities before the weekend. At the same time, the latest US inflation data prompted the market to reduce bets on a rate hike by the Federal Reserve, leading to a weakening of the US dollar. As of the time of writing, the Japanese yen was trading at 161.58 yen per US dollar, slightly higher than the two-year low of 161.95 yen per US dollar reached on Thursday, but still near the weakest level since 1986 - around 161.96 yen per US dollar.