Questions were raised on a sharp strengthening of Japanese yen in late morning to the afternoon after falling to 160 against the dollar.
It was speculated that Japanese officials might have taken action in the currency market on Monday in response to the fluctuating yen-US dollar exchange rates. Despite the yen briefly increasing to the 155 level following its drop to the 160 range, a senior Finance Ministry official refused to provide any comments on the matter.
However, several analysts raised the question that the Bank of Japan should have intervened in the market at the point when the yen hit 155, but somehow it broke past that level earlier this morning.
The yen has been hovering around 150 or weaker against the dollar following the Bank of Japan’s termination of its negative interest rate policy in March. Despite maintaining rates last Friday, the central bank slightly adjusted its inflation forecasts for fiscal 2024.
