Svmuu News: Francisco Pesole, an analyst at ING Group, noted that Japanese authorities may have intervened in the yen exchange rate on Thursday and could take further action on Friday amid tight liquidity due to the U.S. holiday. He noted that the USD/JPY exchange rate fell during early trading on Thursday, even before weak U.S. nonfarm payroll data pushed it below 161.00. “We cannot rule out the possibility that this initial decline was driven by foreign exchange intervention.”
He noted that although the yen has rebounded somewhat, the risk of further intervention remains. Japan tends to intervene around holidays and spreads its operations over several days. He pointed out that taking action after the dollar is hit by adverse events is also consistent with Japan’s 2024 strategy. (Jin Shi)