Japanese yen jumps after US dollar breaches key 150 level

NEW YORK: The yen bounced against the dollar on Tuesday after the greeenback rose above a key 150 level, for the first time since October 2022, leading market participants to suspect that there may have been intervention by Japanese monetary officials to keep the yen from falling further.

Japanese Finance Minister Shunichi Suzuki said on Tuesday authorities were watching the currency market closely and stood ready to respond, but also said any decision on currency market intervention would be based on volatility, not specific yen levels.

A senior Japanese ministry of finance official declined to comment on whether Japan had intervened in foreign exchange markets. The New York Federal Reserve did not respond to requests for comment.

The dollar fell as low as 147.30 yen versus the Japanese currency, after hitting a one-year high of 150.165.

Tuesday’s low in the dollar was its weakest level in three weeks versus the Japanese currency.

“It looks like intervention though there isn’t any official confirmation and the backdrop is not fully convincing. You can say a couple of things, if you just look at the run up in dollar/yen this year versus last year, it’s slower,” said Colin Asher senior economist at Mizuho in London.