What was the motivation behind this most recent action was not immediately known.
Although some experts noted that it bore some of the marks of standard buying, the dollar’s strengthening was more reasonable than the one on Thursday, leaving some to wonder whether or not the main bank was at the heart of the trend.
” It could be a humble more round of action. I would n’t be as confident as yesterday when the move was much bigger”, said Chris Scicluna, head of economic research at Daiwa Capital Markets.
” Given that we have the Japan holiday on Monday, it’s not a bad time for them ( Japanese authorities ) to enforce the move.
” It’s not the greatest of shifts of the yen so far, so I would n’t be overly confident that it’s them, “he added.
NO Split FOR THE Japanese
Some experts believe the BOJ’s recent yen-to-yen rebound could have been the result of the exchange rate being regularly checked with retailers before purchasing.
The BOJ conducted charge checks during the euro/yen money pair’s Asia trading hours, according to a report from the Nikkei news outlet earlier on Friday.
The likelihood of another round of BOJ buying is great as the Chinese currency is close to its weakest since the mid-1980s, according to analysts, and Monday’s people vacation in Japan, when market liquidity is likely to be significantly lower, could open a window.
They must alter their tactics to maintain the business on their toes and demonstrate that they are serious, according to James Malcolm, UBS’s head of FX approach.
The Fed’s rate reduce may come as a result of a softer checking of US prices on Thursday, which will lessen the pressure on the yen by closing the significant trade-delayed gap between US and Japanese interest rates.
” It would n’t surprise me if it were the BOJ, going for a 1-2 punch strategy. Liquidity probably is n’t great so it is a good time, and ( Fed Chair ) Jerome Powell’s speech on Monday could help things along,” said Kenneth Broux, Societe Generale head of corporate research FX and rates.
Fed Chairman Jerome Powell may participate in a Monday interview with the Economic Club of Washington in which he may provide some information regarding a potential September cut.