The yen weakened in the foreign exchange market, with the dollar briefly reaching the ¥158-per-dollar range. There were also reports that the Bank of Japan was preparing for foreign exchange intervention, bringing the exchange rate close to the level before the “rate check.”
The yen weakened in the foreign exchange market, with the yen equivalent of one dollar reaching the ¥158-per-dollar range. Selling the yen to buy dollars intensified, pushing the exchange rate up to that level within a short period.
The move was reported at the same time as news that the Bank of Japan had been preparing for foreign exchange intervention the previous week, making the risk of intervention a focus of attention for financial market participants.
Market participants remain sensitive to developments before and after the price-monitoring phase known as a “rate check,” and the potential for further swings between yen weakness and strength is being closely watched.
The latest move was not directly attributed to news from a specific company or the release of an economic indicator, and may have been influenced by overall supply and demand in the foreign exchange market and information about the Bank of Japan’s preparations for intervention.