Japanese Yen Weakens After Thursday's Rally on Suspected Intervention
The Japanese Yen (JPY) lost some strength on Friday after rallying in the American session on Thursday, possibly due to foreign exchange market intervention by Japanese authorities.
The USD/JPY pair turned south during the American trading hours on Thursday and plummeted to its lowest level since mid-May below 158.00, losing about 3% in less than an hour. The intense decline pointed to a potential intervention in the currency market but there was no official confirmation.
The Bank of Japan (BoJ) announced that it left its monetary policy settings unchanged following the July meeting, acknowledging significant downside risks to economic activity and upside risks to prices, but noted that underlying Consumer Price Index (CPI) inflation is still a risk.