BoJ Intervention Triggers USD Plunge Across Asia
The US dollar experienced a significant decline across Asia on Friday morning following a coordinated intervention by the Bank of Japan in FX markets.
The move led to the biggest one-day loss in USD/JPY in two years, triggering broad losses for the US dollar. AUD/USD jumped 1.0%, returning to six-week highs, while NZD/USD rose 1.4% and hit its highest level since June 5.
The Bank of Japan's intervention was not an isolated event, as reports suggest that there was coordinated action with US authorities performing a 'rate check'. The Bank of Japan is set to meet later today and is expected to keep Japanese interest rates on hold.