Yen declines after intervention of Japanese authorities

Yen fell against the dollar on Thursday and reversed its trend after a sudden rise on Wednesday night that traders and analysts immediately attributed to intervention by Japanese authorities.

According to Reuters, the yen fell 0.80% to 155.73 to the dollar by 0537 GMT, after falling by almost half the rate of its rise recorded late on Wednesday evening, falling from about 157.55 to 153 within about 30 minutes.

The sharp move overnight came during a period of calm in the markets, as it came after Wall Street closed and hours after the Federal Reserve (the US central bank) concluded its monetary policy meeting.

The dollar was already declining, as Federal Reserve Chairman Jerome Powell confirmed the central bank’s tendency to ease monetary policy, although he reiterated that lowering interest rates may take some time in light of ongoing inflation.