BOJ Conducts Rate Check ahead of Long Holiday Period in Japan
London, Sept. 21 (Jiji Press)--The Bank of Japan conducted a "rate check" with financial institutions, a move regarded as a preparatory step toward possible currency market intervention, ahead of a five-day holiday period through Wednesday in Japan, market sources said Monday. The BOJ asked financial institutions about currency market levels, after which the yen strengthened by about 1 yen ...
On September 21, the Bank of Japan (BOJ) carried out a rate check with financial institutions, a step seen as a potential prelude to currency market intervention, according to market sources. This occurred as Japan was entering a five-day holiday period that concluded on Wednesday. The BOJ inquired about currency market levels, resulting in the yen appreciating by approximately one yen against the dollar from late Friday through early Saturday, as per the sources.
The U.S. dollar had plummeted from above 157.50 yen to under 157 yen during this period, according to the information provided. The rate check is thought to have been intended to deter speculative yen selling. Concerns over possible intervention by the Japanese government and the BOJ are rising in global markets. On Friday, the BOJ had voted to increase its policy interest rate during a policy-setting meeting.
However, hopes for additional rate hikes in the near future diminished, partially due to two members of the BOJ Policy Board dissenting against the rate increase, making the decision not unanimous. This dissent led to the yen being sold and the dollar being bought.
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