Yen hits lowest levels since 2002 on Fed rate hike speculation

The Japanese yen hit its lowest level in well over a decade on Thursday despite verbal intervention from the country’s authorities.

As of 15:23 the Japanese yen was higher by 0.37% to 124.19, near its weakest since 2002.

On Thursday, Japanese chief cabinet secretary Yoshihide Suga said excessive moves in foreign exchange rates were undesirable.

However, speaking to CNBC overnight Bank of Japan governor Haruhiko Kuroda adopted a more reserved stance, saying that "yen might appreciate. But I think the exchange rate, including the yen, should move in line with economic fundamentals."

However, in Japan it is the Ministry of Finance which has powers over the country's exchange rate policy and not the BoJ.

Some market commentary referenced traders racing to position for a Fed rate hike in September as the trigger for the move.

Certainly, traders were beginning to look out to the next monthly US employment report, which was scheduled for release on 5 June.

Revised data on US gross domestic product, due out on 29 March, was also keenly awaited. In parallel, data on Japanese consumer prices, household spending and industrial production were due out on the same day.