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Yen jumps as traders watch for new intervention signals

The yen strengthened to as much as 158.22 per dollar, after a Bank of Japan board member raised the prospect of back-to-back interest rate hikes.

Reported · Written up by our desk · Major Pairs

LiveMint Markets reports the yen surged in New York trading, rising as much as 1.2% to 158.22 per dollar on Wednesday, which briefly revived speculation that Japanese authorities could take additional steps to support the currency.

By the end of the session, the yen pared some of its gain, and traders saw no clear confirmation that official action had occurred, according to LiveMint Markets.

The move followed earlier yen strength after a Bank of Japan board member suggested the possibility of outsize or back-to-back interest rate hikes, and it rippled across the $9.5 trillion a day currency market, with the Bloomberg Dollar Spot Index down as much as 0.3%.

LiveMint Markets also noted that Japan spent a record $96.4 billion over the past month to support the yen, citing Finance Ministry data, and referenced prior episodes when intervention speculation intensified after the New York Fed contacted banks about exchange rates.

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