Tokyo Traders Speculate on Possibility of Stealth Intervention in Yen
- Erratic dollar-yen seen when US CPI released last Thursday
- BOJ current-account balance deficit seen larger than estimated
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Speculation intensified among yen watchers that Japan may be using subtle ways to slow the currency’s decline, zeroing in on the volatility seen after Thursday’s surprise US inflation data.
By one estimate, authorities may have spent around 1 trillion yen ($6.7 billion) to support the currency, a figure gleaned from a larger-than-expected Bank of Japan daily current account deficit.