The yen strengthened against the dollar in volatile Tokyo trading on Sept. 30, with USD/JPY at 156.88-92 at 3 p.m., compared with 157.28-31 in late New York trading the previous day. The move followed a yen rebound from a two-day slide, supported by Japanese and U.S. warnings against excessive currency depreciation and quarter-end flows. Dollar demand remained underpinned by elevated U.S. Treasury yields and the wide interest-rate gap between the U.S. and Japan, while investors monitored U.S. core PCE inflation and nonfarm payrolls data. Finance Minister Satsuki Katayama said Japan and the U.S. would remain in close contact on currency-market stability, while top currency official Atsushi Mimura said Japanese and U.S. authorities had issued a clear warning over excessive depreciation.