JPY: Verbal intervention provides temporary relief – MUFG

The US Dollar (USD) has weakened modestly the previous day although remains close to recent highs with the dollar index once again attempting to break above the 106.00-level on a sustainable basis, Senior Currency Analyst at MUFG Lee Hardman notes.

Yen to breach a year to date high at 160.17

“The modest softening of the US Dollar the previous day pushed USD/JPY to an intra-day low of 159.19.”

“Monday comments from Japan’s top currency official Kanda and Finance Minister Suzuki have also helped to temporarily dampen upward momentum for USD/JPY as it moves back to within touching distance of the year to date high (29th April, 160.17).”

“The step up in verbal intervention was evident again overnight in comments from the Japanese government’s top spokesperson Hayashi who in a regular press conference reiterated that Japan is closely watching the foreign exchange market and will respond appropriately to excessive moves.”