Yen Rises on Intervention Risk as Traders Brace for Hawkish Fed
- Traders see risk that Japan may act if USD surges post-Fed
- TD Securities sees 10% chance of dollar-yen above 150 post-Fed
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The yen strengthened for a second straight day as traders considered the risk that a hawkish Federal Reserve may boost the dollar to levels that triggers fresh intervention on a Japanese holiday.
The yen climbed nearly 1% to 146.85 per dollar Wednesday before the Fed decision, about 3% off the three-decade low of 151.95 widely believed to have compelled Japan to step into markets again last month. Japan’s finance minister continued to remind market players that authorities were on watch and would respond to one-sided moves.