LONDON – The yen strengthened steadily against the dollar on Wednesday, with traders suspecting another round of official buying after Japanese authorities last week likely stepped in to haul the currency away from 38-year lows.
The dollar was last down 1.22% at 156.34, its lowest in around a month. The euro was also down 0.9%.
The yen has posted several outsized moves in recent days, appreciating sharply on Thursday and Friday from 38-year lows of 161.96 per dollar, sudden rallies that market participants said had the hallmarks of currency intervention.
Bank of Japan data released on Tuesday suggested Tokyo may have spent 2.14 trillion yen (USD 13.5 billion) intervening on Friday. Combined with the estimated amount spent on Thursday, Japan is suspected to have bought nearly 6 trillion yen via intervention last week.
Japan’s Ministry of Finance was not immediately available for comment when contacted earlier by Reuters. Authorities have recently made it standard practice to not confirm whether they stepped in.
(Reporting by the EMEA and Asia markets teams, writing by Alun John; editing by Amanda Cooper)
This article originally appeared on reuters.com