TOKYO: Japan’s central bank on Wednesday (Sep 14) conducted an operation often seen as an precursor to foreign currency intervention, local media said, as the yen continues to crater against a strengthening buck.
The financial daily Nikkei and other local mass media said the Bank of Japan (BoJ) performed a “rate check”. A Bank spokesman contacted by AFP declined to comment.
A rate examine involves asking marketplace participants about their foreign exchange trading, said Toshikazu Horiuchi of IwaiCosmo Securities.
“Basically it’s a warning, which is the next best thing for an intervention when the swap rate is fluctuating, ” he told AFP.
The particular yen has tumbled from around 115 per dollar within March to lower compared to 140 in recent weeks, as the BoJ maintains its financial easing policies in spite of sometimes sharp rate hikes elsewhere, which includes from the Federal Arrange, to tackle pumpiing.
In early Tokyo trade, a dollar fetched 144. 94 yen, after worse-than-expected US inflation information raised the prospect associated with even steeper ALL OF US rate hikes in order to tame prices.
The rate check reviews saw the yen strengthen quickly, with the dollar touching a minimal of 143. 53 within an hour.