BOJ Conducts Rate Check Ahead of Japanese Holiday Period

The Bank of Japan conducted a rate check with financial institutions ahead of a five-day holiday period in Japan, sparking speculation about possible currency market intervention.

Market sources said that the BOJ asked financial institutions about currency market levels after which the yen strengthened by about 1 yen against the dollar between late Friday and early Saturday. The U.S. currency fell from above 157.50 yen to below 157 yen.

The rate check is believed to have been aimed at discouraging speculative yen selling, according to the sources.