TOKYO: The Bank of Japan is asking market participants during U.S. trading hours about the causes of the yen’s moves against the dollar but is not specifically checking rates, a person familiar with the matter said on Thursday.
“It’s not a rate check,” the source told Reuters, when asked about a report that the BOJ was asking participants specific details about their dollar/yen positions, a move often seen as a threat or precursor to intervention.
Rather, he said, the central bank is “asking, ‘Why is it moving?'” the source said.
The dollar bounced back one full yen soon after U.S. markets came on line on Thursday, with traders wary that the BOJ might intervene to halt further sharp gains in the yen after the dollar sank to around 110 yen.
Copyright Reuters, 2016
Courtesy : BRecorder