Yen Strengthens to 156 per Dollar Amid Suspected Tokyo Intervention
The Japanese yen traded around 156 per dollar on Thursday (May 7) after strengthening by about 1% overnight, a move widely attributed to suspected intervention by Tokyo authorities.
The Ministry of Finance has not confirmed any official action in the foreign exchange market. However, Finance Minister Satsuki Katayama previously warned of taking "firm measures" against speculative trading, leading the market to believe authorities would remain vigilant during the Golden Week holiday period.
The yen strengthened sharply on April 30, when the currency surged by about 3% ahead of the holiday, before weakening again due to the lack of sustained policy action.
Externally, the yen also received support from a weaker US dollar. Expectations of a potential US-Iran deal to end the war reduced safe-haven demand for the greenback. At the same time, a sharp drop in oil prices helped ease inflation concerns, softening expectations that the Fed would need to adopt a more restrictive interest rate stance.
Going forward, the market will monitor further signals from Japanese authorities regarding exchange rate stabilization, the direction of the US dollar in light of geopolitical developments, and oil price dynamics, which influence inflation expectations and global interest rate policy. (asd)
Source: Newsmaker.id
