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Yen Rallies to Build on Gains Spurred by Recent Intervention
The yen climbed as much as 1.8% after traders speculated Tokyo bought the currency, while the dollar fell on hopes of a U.S.-Iran deal.
- On Wednesday, May 6, the Japanese yen surged suddenly to 155 against the U.S. dollar, sparking speculation that Tokyo authorities intervened by selling US$35 billion to support the currency.
- Traders monitored markets during Japan's Golden Week holiday as officials repeatedly threatened to curb speculative moves to combat a weak yen driving up domestic living costs.
- President Donald Trump indicated progress toward a comprehensive agreement with Iran, prompting the dollar to weaken broadly; U.S. Secretary of State Marco Rubio stated the United States achieved its military objectives.
- Yuji Saito, executive adviser at SBI FX Trade in Tokyo, described the sudden move as "obviously an intervention" despite the lack of official confirmation; the yen retreated to 156.4.
- Markets await U.S. non-farm payrolls data later this week, while Jeremy Stretch, head of G10 FX strategy at CIBC Capital Markets, warned that elevated oil prices and high U.S. Treasury yields complicate efforts to sustain yen strength.
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Dollar tumbles against yen as intervention chatter swirls, optimism grows for US-Iran deal
LONDON, May 6 : The dollar fell against most major currencies on Wednesday after the U.S. signalled it may be nearing a deal with Iran, while the Japanese yen suddenly jumped to a more than two-month high as markets braced for another round of official buying from Tokyo.The yen rose by as much as 1.8 per cent
·Singapore
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Coverage Details
Total News Sources10
Leaning Left1Leaning Right2Center2Last UpdatedBias Distribution40% Center, 40% Right
Bias Distribution
- 40% of the sources are Center, 40% of the sources lean Right
40% Right
L 20%
C 40%
R 40%
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