The government and the Bank of Japan are reportedly preparing for yen-buying intervention. From late on the 18th into the early hours of the 19th, the yen surged against the US dollar, briefly reaching around the upper ¥156 range per dollar. Market participants are watching developments closely.
Reports that the government and the Bank of Japan were preparing for yen-buying intervention heightened tensions in the foreign exchange market. The news was reported mainly from overnight into the early morning, and the authorities’ consideration of intervention may have affected the market.
Specifically, the yen was rapidly sold against the dollar, then rose by roughly ¥1 against the dollar. These movements prompted speculation that preparations for intervention by the monetary authorities were behind them, heightening caution among market participants.
Exchange-rate movements were pronounced from late on the 18th into the early hours of the 19th, with reports of the yen rising to the upper ¥156 range per dollar. Market participants in Japan and overseas are closely monitoring whether intervention will be carried out and when.
The article focuses on the facts surrounding preparations for intervention by the government and the Bank of Japan, as well as the price movement immediately afterward. The focus going forward will be whether subsequent reports disclose whether intervention was carried out and the specific amount and methods involved.