USD-JPY exchange rate slips to low 151s on wary of Japanese intervention
The dollar-yen exchange rate fell to the low 151s on the New York foreign exchange market on Sunday (local time), meaning the yen appreciated against the dollar. According to the Nihongeizai (Nikkei) newspaper, the dollar-yen exchange rate ended the day in a range of 151.25 to 35 yen. That's down slightly from the previous trading day, when it soared to 151.97 yen on the Tokyo foreign exchange market, its highest level since July 1990. It is currently trading in a range of 151.33-35 yen.
The yen's rise is largely attributed to the fact that Japan's finance ministry, the Financial Services Agency, and the Bank of Japan (BOJ) held an emergency meeting the night before to prepare for the yen's decline, sparking widespread fears of intervention by Japanese authorities. Finance Minister Masato Kanda reaffirmed the government's willingness to intervene in foreign exchange markets at any time, saying, "We will take appropriate responses to excessive volatility without excluding any means."
A decline in long-term interest rates in the U.S. also boosted the yen, leading to yen buying and dollar selling. The yield on the 10-year U.S. Treasury note fell 0.04 percentage point to 4.19% from the previous day. Demand for Treasuries increased ahead of Easter. As a result, the gap between U.S. and Japanese long-term interest rates narrowed, and yen buying and dollar selling favored, the Nikkei said.
