Japanese authorities reported to have intervened in currency market
The dollar lost about 5 yen and briefly slipped below 158 during New York trading, as informed sources reported Japan had bought yen and sold dollars.
- Japanese authorities reportedly intervened in the currency market by buying yen and selling dollars.
- The action caused the US dollar to fall sharply against the yen, dropping below 158 yen.
- This was the first reported intervention of its kind in approximately three months.
- The intervention was apparently carried out without advance warning, and Japan's Finance Minister has declined to confirm it.
The dollar swung sharply lower during New York trading on Thursday, at one point losing about 5 yen and falling below 158 yen.
The decline took the US currency to its weakest level since mid-May.
Informed sources reported on Friday (July 31) that the Japanese government and the Bank of Japan had entered the market during the session to purchase yen and sell dollars.
It was their first intervention of this kind in roughly three months.
The action appeared to have been carried out without advance notice.
Finance Minister Satsuki Katayama had issued no warning beforehand, unlike ahead of the previous intervention on April 30.
Katayama offered no confirmation when questioned by reporters in Tokyo on Friday morning, declining to comment on whether the authorities had intervened to support the yen.
[Copyright The Jiji Press, Ltd.]
