Japanese officials intervene in FX market to prop up yen
Updated
Updated · CNBC · May 1
Japanese officials intervene in FX market to prop up yen
12 articles · Updated · CNBC · May 1
The yen rose as much as 0.7% on Friday after a 3% jump a day earlier, erasing losses since the US-Iran war began on 28 February.
Tokyo acted after the currency hit about 160.72 per dollar, with Finance Minister Satsuki Katayama and diplomat Atsushi Mimura signalling readiness for further intervention during Golden Week.
Higher oil prices from the Strait of Hormuz disruption are worsening import costs for energy-dependent Japan, while elevated bond yields and a dovish Bank of Japan keep pressure on the yen.
Will Japan's massive yen buying trigger an unwind of global carry trades and destabilize markets?
With oil prices soaring, can Tokyo's intervention truly shield its economy from a deeper crisis?