Yen Rises Amid Speculation of More Intervention After US Support
The yen rallied sharply on Monday amid speculation that authorities may have intervened to prop up the currency again after coordinated action between the US and Japan last week. Sonja Marten, Chief Economist at DZ Bank, discusses the global market reaction to the US and Japan taking action on the yen. (Source: Bloomberg)
The Japanese yen experienced a significant surge on Monday, potentially due to intervention by authorities, following coordinated actions with the U.S. last week. Trading in Tokyo saw the currency swing from a small decline to a gain of up to 1.4% against the dollar, before settling around 156.70 per dollar in London. Strategist Gareth Berry from Macquarie Group suggested that the price action indicated intervention, as Japan's Ministry of Finance had limited options to impact the USDJPY chart.
Japan's intervention could be considered valid under the International Monetary Fund's framework, which permits no more than three episodes of intervention in a six-month window, with each episode lasting no longer than three business days.
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