SINGAPORE, March 25 Reuters The dollar was on the front foot on Monday and kept the yen pinned near a multidecade low, though the threat of currency intervention from Japanese authorities prevented the greenback from heading further north.

The yen was slightly higher on the day and last stood at 151.24 per dollar , having bottomed at a fourmonth trough of 151.86 last week that left it within striking distance of a 32year low near 152 per dollar hit in 2022.

Japan39;s top currency diplomat said on Monday the yen39;s current weakness did not reflect fundamentals, adding to the rhetoric of government officials who have stepped up warnings in recent days over the currency39;s decline.

The moves have come in the wake of the Bank of Japan39;s BOJ landmark interest rate hike at its March policy meeting, as the decision had been well telegraphed. Crucially, traders also reckoned rates in Japan will continue to remain low for some time yet and therefore maintain the stark rate differentials with the United States.

Japanese officials39; verbal intervention is making 152 a very strong nearterm resistance for dollaryen, said Carol Kong, a currency strategist at Commonwealth Bank of Australia.

Markets are fully aware of a potential actual FX intervention from authorities, so I think that39;s keeping dollaryen from moving substantially higher.

I think there is still a high risk that they will come in to prop up the yen if dollaryen were to surge materially perhaps to 155….