- The dollar tumbled against the yen late Wednesday afternoon, recoiling further from 34-year highs two days after traders said Japanese authorities were buying yen to support their currency, which had fallen 11% this year.
Dollar/yen suddenly fell more than 3% from late Tuesday levels, trading as low as 153.00. That was below the 154.40 low seen in Monday's recoil from 160.245. It was last at 154.845 down 1.85% from Tuesday.“We think it was Japan MoF intervening. A good time to do so, with liquidity low late in the day and the dollar weakening after the FOMC. Always better to intervene when market is going in your direction to begin with.”"It looked like intervention and it caught people by surprise.
But at this point I haven't seen any comment from the BOJ. They know that if they don't continue to make their point, then the market will go back to the original levels."This smells like an intervention. There's a lot of liquidity around with the Fed rate decision as well. It looks like the Bank of Japan or the Ministry of Finance was an active earlier this week." "It's a pretty significant move.
"Maybe they thought this was the path of least resistance right now. It hasn't seen to have been having a knock on effect to other FX ... It's very much dollar/yen position. That's what really leads us to think about that this would be a yen story rather than anything else on a day like today after the FOMC meeting because we're not seeing we're not seeing equally sized moves on the US dollar across the board.