Speculations about intervention support the Japanese currency

Frankfurt The Japanese yen rebounded on Wednesday after trading near a 24-year low against the US dollar. The currency temporarily rose by around one percent. The reason for this was speculation about an intervention by the Japanese central bank on the foreign exchange market. This was fueled by a report in the Japanese newspaper “Nikkei”, according to which the central bank had carried out a course test. Forex traders are called and asked for the price of buying and selling the yen. This course review is seen as a possible precursor to an intervention.

In addition, Japan’s Finance Minister Shunichi Suzuki said again that the government was considering intervening in the foreign exchange market. “Recent price action has been rapid and one-sided, and we are very concerned,” Suzuki said. “If such movements continue, we must respond without excluding any options.” All available options would have to be weighed.