At 9am, the pair stood at 2.9984/3.0012. Subsequently, the ringgit traded at 3.001/3.0022 versus the yen at 10.42am.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the sizeable interest rate differentials with Japan’s rate may have given an advantage to the ringgit.

He reckoned that Japan’s first-quarter gross domestic product (GDP) 0.2% contraction suggests that the scope of higher policy rates by policymakers looks limited and may further benefit the ringgit.

Meanwhile, UOB Kay Hian Wealth Advisors head of investment research Sedek Jantan said that Japanese policymakers said they would buy fewer government bonds, which could indicate a shift in approach.

“There’s speculation that they might raise interest rates by 0.1% by the end of July based on swaps trading,” he said, hinting at the Bank of Japan’s confidence about reaching their 2% inflation target.

The Japanese currency endured a prolonged fall, hurting domestic consumption amid higher import costs.

Japanese finance minister Shunichi Suzuki early today said he was concerned about the negative implications of the current weakness in the yen.

Therefore, he said the government will monitor the currency market closely and take appropriate action as necessary.