Yen briefly jumps after hitting near 34-year low against dollar

The Japanese yen experienced a brief surge on Monday after weakening close to the key 160 level against the US dollar. This level had previously triggered warnings from Japanese authorities about intervening in the currency market.

The yen initially weakened to 159.94 per dollar, its lowest level since April 29th. On that date, the yen reached a 34-year low of 160.245, prompting Japanese authorities to spend roughly 9.8 trillion yen to defend the currency.

However, the yen saw a sudden rise in European trading, reaching a high of 158.75 per dollar. Analysts attributed this to market jitters surrounding the potential for intervention by Japanese officials.

The yen’s renewed weakness stems from the Bank of Japan’s (BOJ) decision to postpone reducing its bond-buying stimulus programme until July. The yen has fallen 1.5 per cent so far in June.

Attribution: Reuters