By Rae Wee and Vidya Ranganathan
(Reuters) – The yen jumped all of the sudden towards the greenback on Monday, with merchants citing yen-buying intervention by Japanese authorities to spice up the forex that’s languishing close to 34-year lows.
The greenback fell sharply to 156.55 yen from as excessive as 160.245 earlier within the day. Trade sources mentioned Japanese banks have been seen promoting {dollars} for yen.
Traders had been on edge for any indicators of motion from Tokyo to prop up a forex that has fallen 11% towards the greenback to this point this yr, as even a historic exit from unfavourable charges has didn’t elevate the forex.
Japan’s Ministry of Finance was not instantly out there for remark, with Japan closed for a vacation on Monday.
Bank of Japan governor Kazuo Ueda instructed a press convention after a gathering final week that financial coverage doesn’t immediately goal forex charges, though exchange-rate volatility may have a big financial influence.
Japan intervened within the forex market 3 times in 2022, promoting the greenback to purchase yen, first in September and once more in October because the yen slid in direction of a 32-year low of 152 to the greenback.
The yen has been below stress as U.S. rates of interest have climbed and Japan’s have stayed close to zero, driving money out of yen and into {dollars} to earn so-called “carry”.
The United States, Japan and South Korea agreed earlier this month to “consult closely” on forex markets in a uncommon warning and Tokyo has stepped by its rhetoric towards extreme yen strikes.
take away adverts
.
The yen has additionally hit multi-year lows towards the euro, Australian greenback and .