Yen Jumps 0.9%, Triggers Speculation on Government Intervention
The yen has been making headlines after a sudden jump in value on Wednesday. The currency rallied by 0.9% against the US dollar, with some market participants speculating that it may have been driven by government authorities.
According to Carol Kong, a currency strategist at Commonwealth Bank of Australia, 'The yen rally was about 0.9% and it's not a big move, and I definitely don't think that was an intervention.' However, some are still speculating that the rally may have been caused by a rate check.
The yen has struggled to find lasting support since a joint yen-buying intervention between the US and Japan on July 31. It has come under pressure from wide interest rate differentials, fiscal worries, and a renewed spike in energy prices.
As a result of the yen's strength, the US dollar is on the back foot, with the euro up marginally to $1.1589. Sterling attempted a bounce from a three-week low and last bought $1.3482.