Yen trips past 160-per-dollar to April 1990 lows
Japan and attempts by traders to test key levels and stop-loss orders in a nervous, illiquid market.
The dollar rose as far as 160.245 yen in a sudden move after the yen traded in a narrow 158.05-158.15 range in early deals.
A portfolio manager said «stops» on the pair at the key 160 level had been «taken out», meaning the yen's descent had forced those with long yen holdings and stop-loss orders around that big level to square positions, exacerbating its slide.
The yen's move barely affected the euro and sterling, both of which stayed near the bottom of the ranges hit during Friday's volatile session.
Markets are on guard for any intervention by Japanese authorities to contain the yen's nearly 11% fall this year.
While the yen had its biggest drop in six months on Friday, it also briefly surged to 154.97 to the dollar, triggering speculation that Japanese authorities may have checked currency rates ahead of likely intervention. It was not immediately clear what caused the move.
Japan's yen was at 159.105 by 0200 GMT, down 0.5%. Tokyo markets were closed for the first of the country's Golden Week holidays.
The yen had moved nearly 3.5 yen between 158.445 and 154.97 on Friday as traders vented their disappointment after the Bank of Japan kept policy settings unchanged and offered few clues on reducing its Japanese government bond (JGB) purchases — a move that might have put a floor under the yen.
The Federal Reserve's May 1 policy review is the prime focus for markets this week, with investors already
