Yen Rises Briefly on Suspected Official Intervention
The yen rose briefly on Monday as markets suspected Japanese authorities of intervening. Analysts say rate gaps keep the currency under persistent pressure.
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Japan likely intervened to support the yen on Monday morning, pushing USD/JPY from 157.2 to below 156. The move follows an estimated $35B operation on Thursday that triggered a 3% rally. This volatility forces investors to weigh official warnings against a fundamental trend favoring the United States.
The yen rose from 157.2 per dollar to just below 156 on Monday morning before returning to near 157. This price action served as a warning shot to speculators following a $35B yen-buying operation on Thursday.
