Yen jumps against dollar amid doubts about intervention

Japanese currency rose against the dollar in Asian trading on Monday, and traders indicated extensive intervention to sell the dollar by Japanese banks after the currency fell to its lowest levels in 34 years earlier on Monday.

According to Reuters, the dollar fell to 155.25 yen in two sudden movements that took it from the level of 160.245 to about 158 and then lower after that.

By 0500 GMT, the yen price reached 155.86 yen, up 1.6% in weak trading due to the Golden Week holiday in Japan.

The markets were awaiting intervention by the Japanese authorities to contain the decline of the yen, which fell by approximately 11% this year.

The yen’s movement caused the euro and sterling to rise, but they remained near the ranges they recorded during a volatile session on Friday. The British pound reached $1.2541, up 0.4%.