Dollar Falls Against Yen as Traders Anticipate More Intervention

The dollar fell against the yen on Friday, losing 0.8% to 158.225 yen, after Japanese authorities intervened in the currency market a day earlier.

Traders are bracing for another round of intervention, with some expecting it to happen soon.

Eric Theoret, an FX strategist at Scotiabank, said that even the mere possibility of intervention can have a significant impact on markets in thin liquidity conditions.

The Bank of Japan kept short-term interest rates steady at 1% on Friday, as expected, but signaled that underlying inflation could exceed its target, leading to further rate hikes from September.