The Bank of Japan conducted a “rate check,” asking market participants about exchange-rate levels, and the yen briefly surged to the upper ¥156 range against the dollar in late-night trading. The move is believed to have come against a backdrop of heightened concern that the government and the Bank of Japan could intervene.
From late night into the early morning Japan time, the yen surged by more than ¥1, briefly reaching the upper ¥156 range per dollar. The move came against the backdrop of the Bank of Japan conducting a “rate check,” asking market participants about exchange-rate levels.
A rate check is considered a preparatory step for foreign-exchange intervention, and reports said concerns grew that the government and the Bank of Japan could intervene by buying yen and selling dollars.