The Japanese yen has weakened past 150 per dollar for the first time since November, following a hotter-than-expected U.S. consumer price inflation reading. This decline has revived discussions about potential intervention by Japanese authorities, who have previously acted when the yen breached key levels. The rapid depreciation adds complexity to the Bank of Japan's considerations regarding the timing of its first interest rate hike since 2007. Japanese officials have issued stern warnings in response to the yen's slide, with the Ministry of Finance's Mr. Kanda noting that some of the currency's rapid movements are speculative and not desirable, indicating the MoF intervention watch is back on. Currency strategists in Tokyo suggest that the next critical level for the yen is around 152 per dollar, a point at which officials are likely to be on high alert but may hold off on market intervention. Meanwhile, options traders are betting on further declines in the yen, with open interest in these bets reaching a 17-year high.
The yen is confounding expectations for a rally this year as Japanese appetite for global equities deepens a slump driven by higher US Treasury yields https://t.co/b5FmUBDcm8
Options traders are betting on further declines in the yen and potential intervention by Japanese officials, with open interest hitting a 17-year high https://t.co/k71bKkg8Jl
The yen is back over 150. The MoF's Mr. Kanda has taken note “Some of the recent rapid moves are in line with fundamentals, but some are clearly speculative. I think the latter aren’t desirable." The MoF intervention watch is back on https://t.co/zJfoyoNch0
The next key level for the yen is around 152 per dollar, where officials in Japan are likely to go on high alert but hold off on intervening in the market, according to currency strategists in Tokyo https://t.co/wuB4nGViTO
The yen weakened past 150 to the dollar for the first time since November, drawing a rebuke from Japanese officials https://t.co/OPf0vWoLH4
Yen’s Slide Past 150 To Dollar Prompts Stern Warnings From Japan - Yahoo https://t.co/6uGhLpouLI
The yen’s rapid fall past 150 against the dollar adds a further complication for the Bank of Japan as it considers the best timing for its first interest rate hike since 2007 https://t.co/84N4yvtdBZ
The yen weakened past ¥150 per dollar for the first time since November, breaching a key level that has previously prompted pushback from Japanese authorities, after a hotter-than-expected U.S. inflation reading reduced the appeal of Japanese assets. https://t.co/iatTVJ4ita
The yen weakens beyond 150 per dollar after US consumer price inflation data, reviving the likelihood of an intervention https://t.co/lBaTOk05M1