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Dollar Tumbles Against the Yen

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Paulo Trevisani hedcut

The U.S. dollar remained under pressure Friday against a variety of currencies, including the Japanese yen. A dollar was trading for about 155.68 yen, down from 158.42 late Thursday after its worst day against the Japanese currency since Aug. 1. It was the lowest 5 p.m. rate for the U.S. dollar against the yen since Dec. 18.

Friday in Japan, the country’s central bank held rates steady, avoiding a surprise that could have jolted markets already unnerved by fiscal anxiety.

Chatter built up however of potential intervention by the Bank of Japan to support the yen. “Although we have no official confirmation, the scale and persistence of the move bears all the hallmarks of a well-timed intervention effort from the Bank of Japan,” Corpay’s Karl Schamotta says. He added, however, that it could simply be the result of traders exiting crowded short-yen positions.

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