London, Sept. 21 (Jiji Press)–The Bank of Japan conducted a “rate check” with financial institutions, a move regarded as a preparatory step toward possible currency market intervention, ahead of a five-day holiday period through Wednesday in Japan, market sources said Monday. The BOJ asked financial institutions about currency market levels, after which the yen strengthened by about 1 yen against the dollar between late Friday and early Saturday, with the U.S. currency falling from above 157.50 yen to below 157 yen, according to the sources. The rate check is believed to have been aimed at discouraging speculative yen selling. Caution over possible intervention by the Japanese government and the BOJ is growing in overseas markets. On Friday, the BOJ decided to raise its policy interest rate at a policy-setting meeting. But expectations for another rate hike in the near future receded, partly because two members of the BOJ Policy Board opposed the rate increase, meaning that the decision was not unanimous. This prompted selling of the yen and buying of the dollar. In London foreign exchange trading Monday morning, the dollar moved below 157.50 yen. END [Copyright The Jiji Press, Ltd.]
