FOREX-Yen jumps against the Dollar after BOJ interest rate review, hints of intervention, US PPI data – Nasdaq | Jewelry Dukan

By Caroline Valetkevitch and Alun John

NEW YORK/LONDON, Sept. 14 (Reuters)The yen rose more than 1% against the dollar on Wednesday after the Bank of Japan conducted an interest rate review in preparation for currency intervention, with the Japanese currency strengthening further on the back of US producer price data.

During a course check, central bank officials call traders and ask the price to buy or sell yen. However, actual intervention to support the currency would be a bigger step.

Japanese Finance Minister Shunichi Suzuki told reporters on Wednesday that recent yen moves have been “rapid and one-sided,” adding that currency intervention to buy the yen is among the government’s options should such moves continue.

“Most market participants are eagerly awaiting whether or not we will receive some sort of intervention from the Ministry of Finance in Japan,” said Bipan Rai, North American head of FX strategy at CIBC Capital Markets in Toronto.

“It’s one of those things that we’ve seen comments about so often that they’re watching and monitoring the yen. The fact that they ran an overnight course review suggests we are nearing an intervention. But We do not believe that intervention per se will be as successful unless it involves an immediate knee-jerk response.

The dollar’s recent sharp gains against the yen are linked to the Federal Reserve’s dovish stance on raising interest rates to control inflation. The dollar hit a 24-year high against the yen last week.

The dollar fell 1% against the yen right after the rate check announcement. The Nikkei website reported the price check, citing unidentified sources, and Reuters later confirmed this with a market source. The dollar was last down 1.4% JPY=EBS at 142.67 yen, hitting a session low of 142.6 on the back of the PPI data.

The Dollar Index, which tracks the currency against six major competitors = US dollarsShed 0.3% to 109.55 on Wednesday, a day after posting its biggest one-day percentage gain since March 2020 on an unexpected rise in the US consumer price index (CPI).

On Wednesday, data showed that August producer prices fell for the second straight month, while also showing underlying producer inflation rose moderately last month.

Financial markets have fully priced in a rate hike of at least 75 basis points by the close of next week’s Fed meeting, according to the CME’s Fedwatch tool.

With inflation a minor concern in Japan, the authorities are keeping Japanese government bond yields steady to support the economic recovery. JP/T

In contrast, the two-year-old US2YT=RR The US Treasury yield, a guide to interest rate expectations, rose another 3.2 basis points to 3.788% after rising 18.5 basis points following Tuesday’s consumer price data.

The Euro EUR=EBS rose 0.1% against the dollar to $0.9979.

=============================================== === ===

Currency bid prices at 10:42 (1442 GMT)

description

R.I.C

Last

US Close previous session

change percent

YTD percent change

highest bid

low bid

dollar index

= US dollars

109.5500

109.8300

-0.25%

14.517%

+109.9300

+109.2700

euro dollar

EUR=EBS

$0.9979

$0.9968

+0.11%

+0.00%

+$1.0024

+$0.9956

dollars/yen

JPY=EBS

142.6700

144.6200

-1.35%

+0.00%

+144.9550

+142.5800

euro/yen

EURJPY=

142.36

144.08

-1.19%

+0.00%

+144.4700

+142.3000

dollars/Switzerland

CHF=EBS

0.9609

0.9619

-0.10%

+0.00%

+0.9631

+0.9591

sterling/dollars

EUR=D3

$1.1565

$1.1494

+0.61%

+0.00%

+$1.1578

+$1.1480

Dollars/Canadian

CAD=D3

1.3159

1.3175

-0.11%

+0.00%

+1.3206

+1.3149

Aussie/dollar

CHF=D3

$0.6742

$0.6733

+0.14%

+0.00%

+$0.6748

+$0.6705

Euro/Switzerland

EURCHF=

0.9588

0.9583

+0.05%

+0.00%

+0.9628

+0.9582

euros/pounds

EURGBP=

0.8628

0.8674

-0.53%

+0.00%

+0.8684

+0.8629

NZ Dollars/Dollars

NZD=D3

$0.6012

$0.6000

+0.08%

+0.00%

+$0.6013

+$0.5978

dollars/Norway

NOK=D3

10.1000

10.1125

+0.10%

+0.00%

+10.1460

+10.0710

Euro/Norway

EURNOK=

10.0806

10.0641

+0.16%

+0.00%

+10.1251

+10.0577

dollars/Sweden

SEC=

10.6880

10.6882

+0.09%

+0.00%

+10.7160

+10.6211

Euro/Sweden

EURSEK=

10.6662

10.6570

+0.09%

+0.00%

+10.6779

+10.6369

World Exchange Rateshttps://tmsnrt.rs/2RBWI5E

(Reporting by Caroline Valetkevitch in New York and Alun John in London and Kevin Buckland; Editing by Kim Coghill, Edmund Klamann, Toby Chopra, Mark Heinrich and Jonathan Oatis)

((caroline.valetkevitch@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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