The Dollar edged up close to an 11-month high against the Japanese Yen on Monday, with traders focused on signs of intervention as the Bank of Japan last week dashed hopes of a shift away from the ultra-loose monetary policy.

In the wider currency market, the greenback held steady following last week’s gains as the Fed announced US rates would have to remain higher for longer than first forecast, Reuters reports.

The Yen was flat at 148.38 per Dollar at the time of writing after dropping to its lowest level of 148.49 per Dollar since the end of October.

Japan’s currency declined more than 0.5% on Friday as the Bank of Japan (BoJ) held ultra-low interest rates.

“According to BoJ governor Kazuo Ueda, there was no sign yet of stable inflation on a sustainable basis, so the BoJ will patiently continue with monetary easing under the current framework. That was a clear dampener for the Yen,” said Esther Reichelt, Commerzbank FX analyst.

She went on to say that surpassing 148.50 would be viewed as a trigger for fresh interventions to bolster the Yen.

“It is possible, of course, that exactly such fears of interventions might have prevented a weaker Yen for now.”

Meanwhile, the Dollar index – measuring the currency against six rivals – stood firm at 105.64 and, at the time of writing, was 0.1% up.

Furthermore, the Euro was down 0.1% to $1.0635, edging closer to a six-month low of $1.0615 registered on Friday.

The single currency was on course to lose around 1.9% for the month, the sharpest decline since May, as recession fears mount.

“That (recession threat) does not only suggest that a further rate hike in the eurozone is becoming increasingly less likely but also that the market is going to stick to its rate cut expectations for next year, which is putting pressure on the euro for now,” Reichelt continued.

In the UK, Sterling was flat at $1.2240 after falling more than 1% last week as the Bank of England paused its rate hiking cycle.