Dollar Slips Against Yen as Markets Anticipate Second Round of Intervention

The US dollar slipped against the Japanese yen on Friday as traders anticipated another round of intervention following Japan's move to prop up its currency a day earlier.

The greenback fell by 0.8% to 158.225 yen, a decline from the previous day's drop of 2.4%.

According to sources, the US Treasury informed banks that they may intervene in the yen market and should be prepared for future action.

Japan received support from the US, described by Japan's top foreign exchange diplomat as going 'beyond psychological support.'

Fx strategist Eric Theoret at Scotiabank noted the uncertainty surrounding whether Friday's modest rise in the yen was due to actual intervention or traders' anticipation of it.