Yen Falls as Investors Eye Possible Intervention

The Japanese yen weakened on Monday and was poised to decline for the fifth time in six sessions as investors kept a close eye on potential currency intervention. The Bank of Japan raised interest rates to their highest level in 31 years, 1.25%, but two dissenting votes and ambiguous guidance left investors hesitant to buy the currency.

The yen fell sharply after the rate decision before recovering slightly, with some attributing the move to a Nikkei newspaper report that Japanese officials had conducted rate checks, often seen as a precursor to intervention.

Despite this, market strategist Marc Chandler said he didn't think an intervention at 157 or 157.5 was likely, but acknowledged that markets are range-bound as long as US rates remain firm.