The yen traded at 151.97 per dollar in the Asia session, down nearly 0.2% and weaker than 151.94 where Japanese authorities stepped in during October 2022 to buy the currency and its lowest level since the middle of 1990
The dollar jumped on Wednesday in the wake of more strong U.S. economic data, nudging the Japanese yen to a 34-year low and into the zone that drew official market intervention in 2022.
The yen traded at 151.97 per dollar in the Asia session, down nearly 0.2% and weaker than 151.94 where Japanese authorities stepped in during October 2022 to buy the currency and its lowest level since the middle of 1990.
For the quarter ending later this week the yen is the worst-performing major, down more than 7% on the dollar even after Japan’s exit last week from negative interest rates.
Officials have been making near daily warnings against speculative moves and markets are jittery about a test of 152 per dollar as Finance Minister Shunichi Suzuki said Japan won’t rule out any steps if it thinks the yen is dropping too fast.
The market is very sensitive to the 152 area, said National Australia Bank strategist Rodrigo Catril.
If we were to break that level then recent history would suggest that intervention would be much more likely, Catril added.
The move set the dollar higher more broadly, with the Chinese yuan and New Zealand dollar sold near four-month lows.
The yuan weakened to 7.2285 per dollar despite a strong fix of its trading band by the central bank. The New Zealand dollar dropped 0.2% to $0.5988. New Zealand’s Treasury revised its economic growth forecasts lower on Tuesday.
Australian data published in the morning showed inflation holding at a two-year low of 3.4% in February, reinforcing market wagers that the next move in interest rates would be down. The Aussie slid 0.3% to $0.6515.
It is down 4.4% for the quarter. Other moves in Asia were kept in check as markets wait for Friday’s release of U.S. core inflation data.
