Yen stops falling after more severe intervention warnings

The Japanese yen stopped declining today, Wednesday, after renewed threats of state intervention in the matter, and with investors’ attention shifting to a policy meeting held by the Federal Reserve (the US Central Bank) later today, Wednesday.

Interest rates in the United States are expected to remain the same, but the publication of details regarding the refinancing of Treasury bonds may affect the bond market.

According to Reuters, after falling by 1.7% on Tuesday to the lowest level in a year, recording 151.74 to the dollar, the yen stabilized at 151.32 in Asian trading after statements that were sharper than usual from Masato Kanda, Japanese Deputy Minister of Finance for International Affairs.

“It appears that trading based on speculation is the biggest factor behind the recent currency movements,” Kanda told reporters in Tokyo, adding that the authorities are “ready” to intervene.

The rest of the movements of other currencies were limited, but the New Zealand dollar fell 0.3% to 0.5808 US dollars, and is approaching the lowest level in a year, as employment data that came in lower than expected reinforced speculation that interest rate hikes have reached their end.

The British pound fell to $1.2125, while the euro, which was affected by slightly disappointing European growth figures, fell by 0.1% to $1.0567.

The Australian dollar fell 0.1 percent to $0.6630. The Chinese yuan fell slightly to 7.3190 per dollar. The dollar index rose slightly, recording 106.75.