Dollar around 157 Yen in Tokyo amid Intervention Speculation

Tokyo, May 1 (Jiji Press)–The dollar hovered around 157 yen in Tokyo trading Friday morning, after the Japanese currency spiked against the greenback in overnight foreign trading amid speculation of market intervention by Japanese authorities. At noon, the dollar stood at 157.22-23 yen, down sharply from 160.14-15 yen at 5 p.m. Thursday. The U.S. currency briefly dived below 156 yen in overseas trading Thursday. Market participants widely believe that the Japanese government and the Bank of Japan have intervened in the foreign exchange market to curb the yen’s weakness. Japanese Vice Finance Minister for International Affairs Atsushi Mimura told reporters Friday that he does not intend to comment on whether Japanese authorities carried out a market intervention. Mimura said the government’s view that speculative moves are continuing on the currency market “remains unchanged.” He added that Tokyo is “keeping in contact very closely” with the United States, saying, “We are sharing our understanding of the situation and our actions well.” “The long holiday period is still in its early stages,” Mimura said, leaving room for possible further action. Japan is currently in the Golden Week holiday period. In Tokyo trading Thursday, the dollar briefly exceeded 160.50 yen to notch the highest level vis-a-vis the yen since July 2024. But yen-buying, dollar-selling trading intensified after a flurry of remarks by Japanese finance officials suggesting that a market intervention was imminent. Japanese Finance Minister Satsuki Katayama warned that the time for the country to take “decisive action” against the yen’s rapid depreciation is “approaching,” and Mimura also strongly hinted at an intervention, saying, “This is the last evacuation warning.” An official at a Japanese securities firm said, “There is a high possibility that the Japanese government and the BOJ embarked on a currency market intervention.” Meanwhile, another source said that, if authorities have intervened, it was likely effective as it came at a time when many people were on alert. On the Tokyo Stock Exchange on Friday, the Nikkei 225 average briefly climbed more than 400 points to top 59,700, with buying interest centering on strong earnings-backed issues. However, amid the yen’s strengthening and persistently high crude oil prices, some stocks came under selling pressure, and the broader Topix index edged lower. END [Copyright The Jiji Press, Ltd.]