The yen languished near a 38-year low on Thursday and struggled on the weaker side of 160 per dollar, keeping markets on alert for any signs of intervention from Japanese authorities to prop up the currency.
The yen languished near a 38-year low on Thursday and struggled on the weaker side of 160 per dollar, keeping markets on alert for any signs of intervention from Japanese authorities to prop up the currency.
In the broader market, the dollar was on the front foot and stood near an eight-week high against a basket of currencies, helped in part by a weaker yen and as it rose in step with U.S. Treasury yields.
In a carry trade, an investor borrows in a currency with low interest rates and invests the proceeds in higher-yielding assets.
Analysts said while the risk of intervention has increased, Japanese authorities could be holding out for Friday's release of the U.S. personal consumption expenditures price index before entering the market.
Persons:
Boris Kovacevic
Organizations:
U.S, Treasury, Ministry of Finance
Locations:
Japan, Tokyo