(Reuters) – The dollar fell against the yen late Wednesday afternoon, falling further from 34-year highs two days after traders said Japanese authorities were buying yen to support their currency, which has fallen 11% this year.
The USD/JPY suddenly fell more than 3% from its levels late Tuesday, trading as low as 153.00. That was below the low of 154.40 seen in Monday's bounce from 160.245. The last one was at 154.845, down 1.85% from Tuesday.
comments:
John Felice, FX and kidney strategist at the Bank of New York (emailed to Reuters)
“We believe it was the Japanese Ministry of Finance that intervened. This is a good time to do so, with low liquidity late in the day and a weaker dollar after the FOMC meeting. It is always better to intervene when the market is initially going in your direction.
Mark Chandler, Chief Market Strategist, BANNOCKBURN GLOBAL FOREX
“It seemed like he intervened and surprised people.”
Joseph Trevisani, Senior Analyst, FX STREET, New York
“It looks like an intervention. I don't think the Japanese are going to say or acknowledge anything. They didn't do it last time, but it certainly feels like it. I'm moving from the market action to what you're saying.” Seen here… This is the kind of movement you'll get when some entity, whatever it may be, comes in and sells a significant amount of currency to move the market, a significant amount of dollars in this case.
But at this point I have not seen any comment from the Bank of Japan. They know that if they do not continue to make their point, the market will return to its original levels.
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Amu Sahota, Director at KLARITY FX, San Francisco
“This looks like an intervention. There is a lot of liquidity with the Fed's interest rate decision as well. It appears that the Bank of Japan or the Ministry of Finance were active earlier this week.” “It's a very important move. The writing was always on the wall when you go above 155 to the 160 bracket, that they won't be satisfied with unreasonable moves. Although there hasn't been anything really unreasonable in the last 24 hours.”
“They may have thought this was the path of least resistance at the moment. We haven't seen it have an impact on other FX… It's a very big situation for the dollar versus the yen. That's what really leads us to think about that.” “This will be a yen story and nothing else on a day like today after the FOMC meeting because we don't see equal-sized moves on the US dollar across the board.”
