Currencies
Yen’s Drop to Three-Month Low Reignites Intervention Concern
- Japanese currency weakened past 200-day moving average
- Breach of technical level risks spurring more yen selling
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The yen dropped to its weakest level against the dollar in almost three months, reviving concern that Japanese officials may act to support the currency if it keeps on depreciating.
Japan’s currency slid as much as 1.4% to 153.19 per dollar on Wednesday, paring the move in later trading to finish at the lowest level since late July on a closing basis. The drop led the pair to breach the key technical level of about 151.38, its 200-day moving average, which analysts say opens the door for further declines.