AUD Tumbles Against JPY Amid Suspected Intervention
The Australian Dollar (AUD) has taken a hit against the Japanese Yen (JPY), plummeting by roughly 1.75% to its lowest level since July 3, with traders speculating that Japanese authorities may have intervened to support the currency.
The sudden surge in JPY has swept across Yen crosses, causing USD/JPY to plunge nearly 480 pips below the psychological 160 mark. While there's been no official confirmation from Tokyo, Japanese officials have warned repeatedly that they're prepared to act against excessive currency moves.
Reuters recently reported that authorities are considering a change in strategy that would involve intervening without warning. Traders now look to Friday's Bank of Japan (BoJ) decision and other key economic indicators for further insight into the situation.