Yen Gets the Beat in a Swinging 4‑Yen Dance on Monday
Tokyo’s currency watch is abuzz again: the Japanese yen shot up a hefty four yen on Monday, Oct 24, a second consecutive session of what traders are calling a “thumping” jump. The excitement stems from the Bank of Japan’s suspected early‑market buzz, but the yen’s gains fought back against a chest‑pounding U.S. dollar.
Quick‑Time Movements: From Low to High and Back Again
- Early trades saw the yen dip to 149.70 per dollar (S$1.43).
- Within minutes, it was sprinting to a high of 145.28, a strong hint that the BoJ’s got the ball in the shop.
- However, the rally was brief, dropping back to close to 148 shortly after.
“It’s Blindingly Obvious”
Ray Attrill, head of FX strategy at National Australia Bank in Sydney, called it out: “It’s blindingly obvious that the BoJ is intervening. Dollar‑yen wouldn’t be moving like this otherwise.”
Friday’s Story in a Nutshell
Just last Friday, when the U.S. dollar hit a 151.94 yen (a 32‑year high), the BoJ stepped in again, pushing the yen up more than seven yen to a new high of 144.50 per dollar. This is the second fresh confirmation of Japanese intervention, warranting the current 22‑percent yen slide against the dollar this year.
Goldman Sachs Sounds the Alarm
Analysts at Goldman Sachs note that this pull is part of a strategy to limit yen depreciation while keeping ultra‑low interest rates on the agenda in a world tightening up rates everywhere else. “The yen’s beta to U.S. rates has fallen, and repeated intervention steps will keep it that way for a while,” they wrote last week. The message: “We think this policy mix could be in place for some time, even if it’s not sustainable long term.”
Currency Index Snapshot (Mid‑week)
- Dollar index +0.063% at 111.87.
- Euro +0.02% at $0.9858 (S$1.40).
- Sterling +0.36% at $1.1343, buoyed by Boris Johnson stepping down from his political comeback saga.
- Australian dollar -0.4% at $0.6370 (S$0.57).
- Kiwi +0.16% at $0.576.
- Bitcoin +2.08% at $19,578.40 (S$53.9 billion).
This week’s moves show that the yen’s volatility and the BoJ’s intervention are a bruising but strategic dance in a market that’s leaning hard. Keep a close eye — the next swing could either be a smooth ballet or another wild mayfly.
