Overview
- Heavy selling of dollars in the New York session on Thursday drove the exchange rate from about ¥162 to the upper-¥157 range and briefly into the ¥158 area.
- Traders said the move was caused by aggressive dollar-selling and yen-buying flows that produced fast, large intraday price swings.
- The speed of the rally prompted market talk that Japan’s finance ministry and the Bank of Japan could intervene to slow further yen strength.
- U.S. authorities carried out a rate check with financial firms, a step market sources said signaled concern from U.S. officials during the episode.
- Oil markets reacted to separate news that a Saudi-led multinational maritime defense coalition had been announced, and the WTI September contract fell to about $83.59 on rising hopes for Middle East supply recovery.