The Japanese yen remained largely unchanged around 157 per dollar on Thursday, amid thin trading volumes as Japan observed the holiday season.

Investors continued to digest the Bank of Japan's interest rate outlook, following an uptick in both headline and core inflation in November. Minutes from the BoJ's December meeting revealed that policymakers had debated the possibility of a near-term rate hike, with some members suggesting that conditions were starting to align for such a move.

Meanwhile, traders are keeping a close eye on potential Japanese government intervention, after Finance Minister Katsunobu Kato reiterated concerns about the weakening yen and warned against excessive currency fluctuations. The yen depreciated more than 11% in 2024, marking its fourth consecutive year of decline against the dollar.

Source: Trading Ecnomics