Yen rally fades a week after U.S.-Japan intervention as focus shifts to policy
The coordinated involvement from the Treasury and BoJ had initially lifted the yen as low as 155 to the dollar, down from just above 163 beforehand.
The Japanese yen experienced a notable surge against the U.S. dollar following a weaker-than-expected U.S. employment report on Friday, according to wire reports. The currency gained 0.4% on the day, trading at ¥157.76 per dollar as of 5 p.m. New York time. However, despite this upward movement, the yen concluded the week in a slightly weaker position than when it started, after a turbulent period marked by interventions from Japanese and U.S. authorities.
Lee Ferridge, a strategist at State Street, explained that the market anticipated the yen's move, as the previous intervention occurred while the U.S. dollar was already under pressure. Ferridge noted that Friday's gain did not seem to be directly linked to Japanese or U.S. intervention, suggesting that "it's always easier to push on an open door."
This report highlights the delicate balance between currency markets and the decisions made by central authorities in response to economic indicators.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
