Dollar Weakens Against Yen on Japanese Intervention Concerns
The US dollar weakened on Thursday (April 30), with the yen the main driver after markets weighed reports that Japan had intervened in the currency market for the first time since July 2024 to support the yen. The dollar index fell 0.8% to 97.80 at 10:45 a.m. ET, while USD/JPY fell to 156.71, bringing the yen to its strongest level since July 2024.
The Nikkei reported that the Japanese government and the Bank of Japan intervened on April 30, buying yen and selling dollars. This concern gained traction after Finance Minister Satsuki Katayama previously signaled that the time for "decisive" action was approaching. Japan has been suggesting the area around 160 per dollar as a level that could trigger stabilization measures.
The market is also keeping an eye on oil. Brent briefly surged to a four-year high overnight, but then pared gains and turned lower. The initial catalyst was reports that the US was considering military options to break the standoff with Iran. On the other hand, the dynamics of the Iran war still give the dollar a "safe haven premium" because the US is seen as relatively better protected from oil price shocks as a major energy exporter compared to Japan and the eurozone—although the strengthening of the yen due to intervention caused a temporary correction in the dollar. (Arl)*
Source: Newsmaker.id
