Yen jumps briefly as Japan takes on speculators
The currency climbed as much as 0.8% after officials signaled they may act against speculative trading, traders said.
- On Monday, May 4, the yen surged 0.75% against the US dollar during a nine-minute stretch around midday Singapore time, as traders remained on edge over potential further intervention by Japanese authorities to curb recent declines.
- Japan likely spent around 5.4 trillion last week to support the yen, a move analysts believe signals policymakers view the 160 level as a critical 'line of defense' against further depreciation.
- Credit Agricole CIB senior strategist David Forrester noted 'low levels of liquidity due to the Golden Week holiday will lead to exaggerated moves,' complicating whether recent market shifts reflect deliberate intervention.
- Japanese Finance Minister Satsuki Katayama declined to confirm intervention plans on Monday from Uzbekistan, stating instead that Japan remains prepared to take 'bold action' against speculative foreign-exchange movements.
- Barclays Plc strategists warn sustaining long-term yen strength remains challenging due to overseas interest rate pressures, though Goldman Sachs analysts estimate Japan retains firepower to intervene 30 times at last week's scale.
9 Articles
9 Articles
Yen jumps briefly as Japan takes on speculators
A brief jolt higher in the yen on Monday sparked speculation that Japan had again sought to defend its sinking currency, though analysts say pressure is likely to persist even as the risk of further official intervention looms.
Yen suddenly jumps, markets on alert for intervention
SINGAPORE, May 4 (Reuters) – The yen suddenly jumped against the dollar in Asia trade on Monday, with traders on alert for another bout of intervention after Tokyo likely stepped into the market to shore up the Japanese currency last week. The dollar was down 0.54% at 156.22 yen, having fallen nearly 0.9% to a low of 155.69 at one point in choppy trade. Trading was thinned with markets in Japan closed for a holiday. Investors were wary of…
Yen Spikes Against Dollar as Traders Eye Possible Intervention: A Critical Market Shift
BitcoinWorld Yen Spikes Against Dollar as Traders Eye Possible Intervention: A Critical Market Shift The Japanese yen experienced a sharp spike against the US dollar on Tuesday, sending shockwaves through global currency markets. Traders and analysts now focus intently on the possibility of official...
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