Yen Surge Keeps Traders on Alert for Intervention
· Business · LiveMint, Bloomberg
The Japanese yen rallied up to 1.2% to 158.22 per dollar during New York trading, prompting speculation of official intervention. The currency strengthened after a Bank of Japan board member raised the possibility of outsize or back-to-back interest rate hikes. The sudden movement reverberated across currency markets, causing the Bloomberg Dollar Spot Index to fall by up to 0.3%. Tokyo and Washington previously conducted a coordinated yen-buying operation after the currency hit a four-decade low near 164 per dollar. Neither the US Treasury nor the New York Fed commented on whether rate checks occurred.
Why it matters
Fluctuations in the Japanese yen impact global foreign exchange markets and influence monetary policy expectations across major economies.
Read the original report — LiveMint
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