Tokyo, 29 April, /AJMEDIA/
The yen rallied sharply after dropping to a new 34-year low in the 160 level against the U.S. dollar in Asian trading on Monday amid speculation of intervention by Japanese authorities.
The dollar topped the 160 yen line for the first time since April 1990, rising from the 158 yen level in thin trading with financial markets in Tokyo closed for a national holiday.
But the U.S. currency quickly fell back, dropping to as low as the 155 yen level as some dealers suspected Japanese authorities may have stepped into the currency market to stem the yen’s slide.
A senior Finance Ministry official declined to comment on the yen’s sharp rise.
The yen also fell to around 171 against the euro at one stage, its lowest level since the single currency was introduced in 1999.
The Japanese currency was under heavy selling pressure which increased after the Bank of Japan on Friday decided to leave its monetary policy unchanged at a policy board meeting.
BOJ Governor Kazuo Ueda said at a press conference after the meeting that he currently sees no major impact of the yen’s recent sharp decline on prices, even as a weaker yen raises the cost of imports.
Market participants are now awaiting the U.S. Federal Reserve’s two-day policy meeting starting on Tuesday.
