Yen Sinks to 159 Range Amid Holiday-Thinned Liquidity
The yen has fallen to its lowest level in over two weeks, touching 159.06 against the dollar and erasing nearly half of the gains made by a coordinated intervention between Japan and the US last month.
The intervention, which was implemented on January 31 (US Eastern Time), had pushed the yen back up to the low-155 range but its effects have been short-lived as the currency has since weakened once again.
Market estimates suggest that the total scale of the intermittent intervention conducted by the Japanese government and the Bank of Japan from January 30 to February 1 may have reached ¥11 trillion to ¥14 trillion (approximately $69.2 billion to $88.1 billion).
A key factor behind the yen's latest slide is the reduced market participation due to a Japanese national holiday, which has amplified price movements in thinner-than-usual trading.