Traders bet on Japanese authorities stepping in to support the yen after reports of rate checks and bank preparations for currency intervention.
The Japanese yen strengthened for a second day amid growing speculation that authorities are preparing to intervene in currency markets. Reports indicated banks were instructed to ready yen-euro exchanges, fueling expectations of potential official action to curb the yen’s decline. The Bank of Japan held its policy rate at 1.00%, as anticipated, but traders remained focused on intervention risks.