The Yen exchange rate rose against the dollar for the second consecutive day. Traders are aware of the risk that the US Federal Open Market Committee’s (FOMC) hawkish stance will push the dollar higher and prompt Japanese authorities to intervene.
In the foreign exchange market on the 2nd, the Yen rose almost 1% to 146.85 yen to the dollar. Almost 3% lower than last month’s low of 151.95 yen. The same level is believed to have invited intervention from the government and the Bank of Japan.
The Japanese market will be closed on the 3rd for a holiday. Japanese authorities are expected to remain cautious due to concerns that the post-FOMC moves will be magnified while trading is thin.
Original title:Yen Rises on Intervention Risk as Traders Brace for Hawkish Fed (excerpt)
