Yen steady as traders monitor Japan election and potential intervention.

** Currency Movements and Policy Anticipation** The Japanese yen is trading near 18-month lows, with market participants anticipating potential intervention. This expectation follows strong warnings from Japanese authorities amid speculation of an upcoming election, which could pave the way for additional fiscal stimulus. --- The U.S. dollar recovered from an initial decline. This reversal followed Federal Reserve Chair Powell's statements addressing grand jury subpoena concerns. Despite the recovery, anxieties regarding the Federal Reserve's political independence persist, even as incoming U.S. economic data remains positive.