The yen suddenly surged more than 3% against the dollar in late trading in New York, triggeringCryptotornadowemixIn the market, the Japanese authorities may intervene after the currency has fallen for a long time.CryptotornadowemixTo speculate.
The yen to the dollar from 157CryptotornadowemixSuddenly soared to 153 around .58.Cryptotornadowemix.04, yen-related futures that changed hands in the last hour of the day exceeded 4 billion US dollars. This is the highest number of contract transactions since Feb. 2, according to CME.
"in terms of price movements, this is similar to intervention," said Yusuke Miyairi, foreign exchange strategist at Nomura International.
An analysis of BoJ accounts found that Japanese authorities may have intervened in foreign exchange on Monday for the first time since 2022 to prop up the yen.
Its current account is likely to fall by 7.56 trillion yen ($48.2 billion) due to fiscal factors, including government bond issuance and tax payments, according to data released by the Bank of Japan on Tuesday. This is much larger than the drop of about 2.1 trillion yen estimated by private money brokers, implying that the size of the intervention is about 5.5 trillion yen.
The U.S. Treasury didn't respond to a request for comment.