Hot Now
TOKYO: The yen surged on Thursday, taking some of the wind out of the sails of the recently buoyant dollar and prompting investors to cover positions against a backdrop of potential event risks, including a speech by Federal Reserve chief Janet Yellen.
The dollar earlier had stuck close to recent ranges, as investors looked for Yellen to provide clues on Friday as to whether a U.S. rate increase is imminent, and awaited clarity from Japan on whether it would press ahead with planned sales tax hike next year. Then a sudden spike in the yen in relatively illiquid conditions triggered stop-loss orders and brought the Japanese currency as low as 109.42 per dollar from a session high of 110.235. It was last at 109.69, down 0.4 percent. "The sudden move shows how jumpy everyone is," said a trader at a foreign bank in Tokyo.
Some market participants mentioned an interview with Masatsugu Asakawa, Japan´s vice-minister of finance for international affairs, who told the Financial Times that direct currency intervention will remain in the ministry´s toolbox.
Other traders, who did not see any fresh trading catalysts, said they were forced to buy back the Japanese unit as it rapidly shot up against other currency pairs as well as the dollar.
