NEW YORK (Reuters) – The Japanese currency gained as much as 5 yen against the dollar, rising from a fresh 34-year low hit during the session, with traders talking about intervention by Japanese authorities for the first time in 18 months.
The greenback lost ground to 154.4 yen in several rapid moves that took it away from an intraday high of 160.245, its highest level since 1990.
Around 5.10 pm Italian time, the US currency was stuck at 156.63 yen, down 1.09%. In Asia, trade is less intense than usual due to the Japan Week holiday.
Japanese diplomat Masato Kanda had no comment when asked whether authorities had intervened, although traders say the move had occurred. The Wall Street Journal is of the same opinion, citing people familiar with the decision.
The suspected intervention by the Japanese central bank comes a few days before the Federal Reserve’s monetary policy announcement, scheduled for May 1st. According to CME’s FedWatch tool, markets have broad expectations that the Fed will keep rates unchanged, given the strength of the labor market and recent inflation data, which have turned out to be stronger than expected.
The dollar index fell 0.23% to 105.69, while the euro rose 0.24% to $1.0719. The pound strengthened 0.46% to $1.2547.
(Translated by Chiara Scarciglia, editing by Valentina Consiglio)
