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Brief Yen Surge Shows Traders Highly Sensitive to Intervention
The yen’s sudden surge Tuesday was likely the result of traders increasingly sensitive to the risk of currency intervention by Japanese policymakers and not any official action in foreign-exchange markets, according to Nomura Plc. Dollar-yen witnessed a brief reversal in New York morning trading, falling from 154.76 to a session low of 154.04 within a matter of minutes, before giving back most of that drop. With the pair at a 34-year high and the uptrend in dollar-yen intact, traders are mindful of any sharp moves that could be Japan’s Ministry of Finance intervening — something that last happened in September ... (full story)