Japan's Nikkei falls over 2% amid suspected yen intervention; U.S. inflation cools more than expected
What action did Masato Kanda say authorities would take?
Masato Kanda, Japan's top currency diplomat, said authorities would take action as needed in the foreign exchange market. He mentioned that recent yen moves were somewhat rapid but did not comment on whether authorities had intervened in the currency market.
Why did Japan's Nikkei fall over 2%?
Japan's Nikkei fell over 2% due to suspected yen intervention after the U.S. inflation data release, which prompted a sudden strengthening of the yen against the dollar. This led to analysts and traders suspecting possible intervention from Japan's Ministry of Finance. Additionally, Japan's top currency diplomat Masato Kanda said that authorities will take action as needed in the foreign exchange market.
What caused the yen to strengthen against the dollar?
The yen strengthened against the dollar due to softer-than-expected U.S. inflation figures, prompting speculation of a possible intervention by Japanese authorities to support their currency. The yen's surge also followed comments from Japan's top currency diplomat, Masato Kanda, who said authorities would take action as needed in the foreign exchange market.