Dollar Dives below 155.50 Yen amid Intervention Rumors

Singapore, May 6 (Jiji Press)–The dollar tumbled below 155.50 yen to hit a two-month low against the Japanese currency in Asian trading Wednesday after moving above 157.50 yen, triggering speculation about an additional intervention by Japan. “It is highly likely that the Japanese government and the Bank of Japan have carried out a yen-buying, dollar-selling intervention,” a Japanese bank official said. Caution over market intervention by Japanese authorities is growing amid thin trading while the Tokyo market was closed Wednesday for a national holiday during the country’s Golden Week holiday period. The dollar plunged more than 5 yen after Japanese authorities apparently spent 5 to 6 trillion yen on a foreign exchange market intervention on Thursday last week. In Asian trading Monday, the dollar also dived below 156 yen after trading above 157 yen. Although Japanese authorities have not revealed whether they carried out an intervention, Japanese Vice Finance Minister for International Affairs Atsushi Mimura told reporters on Friday that the long holiday period is still in its early stages, hinting at the possibility of further action. END [Copyright The Jiji Press, Ltd.]