(Reuters) – The Japanese yen suddenly jumped against the dollar on Monday as traders were on high alert for signs of intervention by Japanese authorities to strengthen the currency, which is languishing near 34-year lows.
The dollar fell sharply to 156.55 yen from 160.245, and it was not immediately clear what was behind the move.
Traders are anxiously awaiting any sign of Tokyo moving to support the currency, which has fallen 11% against the dollar this year.
Comments:
TONY SYCAMORE, MARKET ANALYST, IG, SYDNEY
“This move has all the hallmarks of de facto intervention by the BOJ, and what better time to do this than another time during a Japanese public holiday, which means less liquidity and a greater return on the BOJ’s investment!”
KYLE RODDA, SENIOR FINANCIAL MARKETS ANALYST, CAPITAL.COM
“My gut feeling is that if that were the case, it would be faster and the Treasury would announce it. But we’ll see!”