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2h ago

Yen Jumps After Reported NY Fed Rate Checks, Heightening Intervention Risk

Traders read the inquiries as a cue that authorities could step in if volatility worsens.

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Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo
People walk by the Federal Reserve Bank of New York in the financial district of New York City, U.S., June 14, 2023. REUTERS/Shannon Stapleton/File Photo
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Overview

  • Reuters reported the New York Fed conducted dollar–yen rate checks around midday Friday, acting as fiscal agent for the U.S. Treasury according to a source.
  • The dollar fell from about 157.50 yen to a four-week low near 155.66, marking a sharp intraday move that reversed recent weakness in the Japanese currency.
  • Japan’s finance minister, Satsuki Katayama, said authorities are closely watching foreign exchange markets but declined to confirm any checks or intervention.
  • Prime Minister Sanae Takaichi warned Sunday that officials stand ready to respond to “speculative and highly abnormal” moves, reinforcing elevated intervention risk.
  • BOJ Governor Kazuo Ueda noted Japanese government bond yields have risen at a very rapid pace and said bond-buying could be increased in exceptional cases, with BOJ data due Monday that could reveal any market operations.