Yen cowers near 150 as intervention chatter runs rife
By Rae Wee
SINGAPORE (Reuters) — The yen sat on the stronger side of 150 per dollar on Wednesday, after an unexpected surge in the previous session stoked speculation that Japanese authorities could have intervened to support the currency.
The Japanese currency was last marginally lower at 149.12 per dollar in early Asia trade, after having jumped nearly 2% at one point on Tuesday to a high of 147.30 — a move that came after the yen tumbled to 150.165 per dollar, its weakest since October 2022.
«Them stepping in here would be perfectly consistent with recent warnings from top officials and past behaviour,» said James Malcolm, head of FX strategy at UBS.
«Authorities may be unable turn the trend in FX markets immediately. Yet entering the market in size provides a strong signal and helps buy time for other things to fall into place that in the fullness of time then contribute to position unwinds.»
Japanese authorities last year intervened to prop up the yen for the first time since 1998.
Other currencies similarly fell against the yen in the previous session, with the euro losing more than 1.5% to a low of 154.39 yen. It recovered some of those losses and last bought 156.05 yen.
Japan's top currency diplomat Masato Kanda said on Wednesday he would not comment on whether Tokyo intervened in the exchange-rate market overnight, though said that «we have only taken steps that have the understanding of U.S. authorities».
U.S. Treasury Secretary Janet Yellen said last month whether Washington would show understanding over another yen-buying intervention by Japan «depends on the details» of the situation.
DOLLAR POWER
In the broader currency market, the dollar charged higher on the back of upbeat data on Tuesday showing U.S. job
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