US Treasury comments on Japan’s intervention against yen volatility

A spokesperson for the US Treasury said on Thursday that they acknowledge the Bank of Japan’s intervention in the foreign exchange market.

“The Bank of Japan today intervened in the foreign exchange market. We understand Japan’s action, which it states aims to reduce recent heightened volatility of the yen,” the spokesperson stated.

The USD/JPY pair showed no immediate reaction to thisnews and it was last seen losing more than 1% on the day at around 142.35.

Japan intervened to support the yen for the first time since 1998, seeking to stem a 20% decline against the dollar this year amid a widening policy divergence with the U.S.

The yen rose as much as 2.3% against the US dollar, pulling back sharply from the lows of the day when it had breached a key psychological level of 145, as top currency official Masato Kanda said the government was taking bold action.