The Japanese yen stabilised against the US dollar. The current USDJPY exchange rate stands at 149.27.
The JPY quotes increased in response to news about talks on interventions.
Last autumn, Japanese authorities intervened in currency trades when the yen dropped to 145.90 per US dollar. This time, the dollar managed to reach 150.11 JPY, but no real measures or actions have been taken yet.
The Japanese Ministry of Finance claimed yesterday that it was monitoring the situation. This could mean anything – from maintaining a conservative position of watching without interfering to an active phase of talks on financial interventions to the market.
The critical reason for the weakening of the JPY exchange rate is the fundamental difference between the interest rates of the US Federal Reserve and the Bank of Japan.