New York (awp/afp) – The yen rose sharply on Monday against the dollar after tumbling to a new low since 1990, with markets speculating possible intervention by the Japanese authorities on the foreign exchange market.
Around 6:00 p.m. GMT, the Japanese currency climbed 1.39% to 156.16 yen per dollar, after hitting its lowest level since April against the greenback.
In trading at the start of the Asian session, the yen tumbled against the greenback to 160.17 yen, a level last reached in 1990, driven by the rebound in American inflation which removes the prospect of a decline in American rates.
This slide in the Japanese currency “seemed to provoke an energetic response from the Japanese monetary authorities”, explained Shaun Osborne of Scotiabank, referring to the sudden rise of the yen after having touched this level for the first time in 34 years.
The Bank of Japan’s intervention “has not been officially confirmed and may not be confirmed until the Finance Ministry discloses foreign exchange intervention in its data next month,” the analyst added. . But according to him “the sharp rise in the yen and its timing, at a time when Tokyo markets are closed for the holidays, certainly suggests that the authorities have taken measures to support the yen.”
The scale of the price movements is “similar to that of the fall of 2022, when Japan last intervened” in the foreign exchange market to stop the fall of the currency, noted Lee Hardman, analyst. at MUFG.
For James Harte also, “this movement suggests that the Japanese authorities have finally intervened in the market after much anticipation in recent weeks.”
“I have no comment to make at this time,” Masato Kanda, vice minister of finance for international affairs, told reporters.
“Although there has been no official confirmation of the intervention, the marked acceleration in the depreciation of the yen since the general policy meeting of the BoJ (Bank of Japan, editor’s note) at the end of last week has provided a justification” for an intervention, believes Lee Hardman.
The Japanese currency has been under pressure since the BoJ chose to keep its interest rates unchanged on Friday, during its last meeting.
The Japanese financial market was closed on Monday due to a public holiday, “which means any action will have been amplified by lower volumes”, Mr Harte said.
Cours de lundi Cours de vendredi 18H00 GMT 21H00 GMT EUR/USD 1,0722 1,0693 EUR/JPY 167,41 169,31 EUR/CHF 0,9761 0,9776 EUR/GBP 0,8534 0,8559 USD/JPY 156,16 158,33 USD/CHF 0,9104 0,9142 GBP/USD 1,2563 1,2493
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