The yen advanced against all Group-of-10 currencies as traders mulled potentially hawkish comments from Bank of Japan Governor Kazuo Ueda on the negative interest rate policy.

Ueda told the Yomiuri newspaper it’s possible the BOJ will have enough information by year-end to judge if wages will continue to rise — a key factor in deciding whether or not to end super-easy policy. Still, the central bank chief also said the BOJ is some distance away from achieving its price stability target and would continue its patient monetary easing.

Ueda Says BOJ May Know Enough About Wages by Year-End: Yomiuri

The currency strengthened as much as 0.8% to 146.67 per dollar in early Asia trading Monday. Some also attributed geopolitical tensions as a reason for strength in the haven yen after US President Joe Biden asserted that China’s economic problems have diminished its capacity to invade Taiwan.

It’s “a bit of a jittery environment out there,” said Marvin Loh, a strategist at State Street in Boston.

Traders have been on tenterhooks this month as Japanese officials said they won’t rule out any measures to address excessive currency moves, the first steps toward intervention. The yen has slumped 11% this year and is close to a more than three decade low and levels at which officials last stepped in to prop up the currency.

Japan Ramps Up Verbal Defense as Yen Sets Fresh 10-Month Low

(Updates throughout)

Author: Matthew Burgess and Michael G. Wilson