Yen Takes a Beating After Tokyo's Late-Night Intervention
The Japanese yen came under renewed pressure on Friday after its sudden surge in the previous session. Tokyo intervened in the currency markets overnight, buying up the yen and selling dollars before the Bank of Japan's policy decision.
The intervention helped pull the sagging yen from four-decade lows, but it only provided temporary relief for the currency. The dollar gained by as much as 0.45% to 160.175 in early trades, after its biggest single-day drop since January 2023 in the previous session.
Most analysts polled by Reuters expect the BOJ to raise rates again to 1.25% by year-end, which could further pressure the yen. 'If you want to kind of intervene... it's probably quite a good time,' said Rodrigo Catril, senior FX strategist at National Australia Bank, citing a weaker dollar and positive risk sentiment.