(Bloomberg) Options traders are preparing for turbulent yen trading. Most Read from BloombergBiden Vows Aid for Gaza, Backs Israel Over Hospital BlastHospital Blast Kills Hundreds as Israel, Hamas Trade BlameQQQ Advances in Late Trading as Tesla Rebounds: Markets WrapTesla’s Runaway Growth Faces Reality Check in Turbulent EconomyUPenn Donors Pile Pressure on School as David Magerman Pulls SupportFluctuations are likely to increase amid growing concerns the Japanese authorities will intervene
Japanese Finance Minister Shunichi Suzuki said on Friday there were many factors to consider in determining whether moves in the foreign exchange market were "excessive", adding that there were no changes in how the government would deal with them. Japanese authorities are focusing on the speed of currency fluctuations rather than targeting at any specific levels when they judge any need to intervene in the currency market to stem excessive volatility, analysts say. "There's no change in the government stance," Suzuki said, when asked about intervention and what defines an excessive move.
The yen sat on the stronger side of 150 per dollar on Wednesday, after an unexpected surge in the previous session stoked speculation that Japanese authorities could have intervened to support the currency. The Japanese currency was last marginally lower at 149.17 per dollar in early Asia trade, after having jumped nearly 2% at one point on Tuesday to a high of 147.30 - a move that came after the yen tumbled to 150.165 per dollar, its weakest since October 2022. Japanese authorities last year intervened to prop up the yen for the first time since 1998.
Asian stocks fell to a 11-month low on Wednesday after another piece of resilient U.S. economic data sent Treasury yields to fresh highs, while a sharp rise in the yen had traders speculating that Japanese authorities stepped into the market. The yen breached the 150-per-dollar level before suddenly shooting to 147.3. There was no confirmation from Tokyo, where Japan's top currency diplomat made no direct comment on the move.