-- The yen advanced more than 3% against the dollar late in New York, fueling speculation that Japanese authorities intervened for a second time this week to support the currency after a prolonged bout of weakness.Lilly Soars as Forecast Boost Shows Weight-Loss Drugs’ Power
The currency market has been on alert for months about potential intervention, with Japanese officials ratcheting up their rhetoric around the pace of the yen’s slide. On Monday, the currency erased losses and quickly gained almost 3% after touching a 34-year low. While some past cases of extreme moves in the yen have been attributed to algorithmic trading, the combination of the spike at the end of the trading day when liquidity is usually thinner could have provided an opportune moment for Japanese authorities to act.
Earlier on Wednesday, the US Federal Reserve held interest-rates steady, with Chair Jerome Powell indicating that the central bank was unlikely to cut any time soon. Still, with markets jumpy and looking for action, some said Wednesday the appearance of possible intervention could instead be the result of over-extended positioning.
The Federal Reserve is keeping interest rates steady, matching many expectations on Wall Street. Wednesday's FOMC decision is just another story beat in the Fed's narrative around the market and if regulators are still on the right path to 2% inflation. Roth MKM Partners Chief Economist and Macro Strategist Michael Darda joins Market Domination to explain why he believes this was the right move by the Fed.