Svmuu News: Jane Foley, an analyst at Rabobank, said speculation is mounting that Japanese authorities may take advantage of thin trading volumes on Friday—a U.S. holiday—to intervene in the yen market. In fact, it would be more surprising if Japanese authorities took no action at all.
She noted that further intervention appears inevitable, but intervention alone is unlikely to be sufficient to alter the market’s negative sentiment toward the yen. The yen’s weakness stems in part from a stronger U.S. dollar, but the rise in the Japanese stock market may prompt foreign investors to strengthen their hedging against the risk of a falling yen. (Jinshi)