Yen weakens against the dollar, but rallies on intervention speculation
- Yen falls to fresh 34-year low against the dollar
- Rallies amid rumors of intervention to support the currency
- USD/JPY jumps by two yen to burst above 160
- Yen weakens due to widening bond yield differentials
- Japanese government bond yielding just 0.3%
- Authorities hint at possible market intervention
- USD/JPY falls sharply after reaching 160 mark
- Cross stabilizes around 156.80
- Impact of intervention appears to be temporary
- USD/JPY pair driven by movements in US 10-year yields
The Japanese yen fell to a fresh 34-year low against the dollar, but then rallied sharply amid rumors of intervention to support the currency. The USD/JPY jumped by two yen to burst above 160, the yen’s weakest level against the greenback since 1990. This comes as the yen weakens due to widening bond yield differentials, with the U.S. 2-year Treasury yield up 75 basis points this year. In contrast, the 2-year Japanese government bond is yielding just 0.3%. The Japanese authorities have hinted at possible market intervention to support the yen. After reaching the 160 mark, the USD/JPY fell sharply and stabilized around 156.80. The impact of the intervention appears to be temporary, as the USD/JPY pair is driven by movements in US 10-year yields.
Factuality Level: 2
Factuality Justification: The article contains irrelevant information about the technology used to power the feature, unnecessary details about market movements, and speculative statements about interventions by Japanese authorities. It lacks depth and context, and fails to provide a comprehensive and accurate analysis of the situation.
Noise Level: 2
Noise Justification: The article is focused on the recent fluctuations in the USD/JPY exchange rate and provides detailed information on the factors influencing the movement. It stays on topic and provides relevant data and quotes from experts. However, it lacks broader analysis, antifragility considerations, and accountability of powerful entities. Overall, the article is concise and informative, hence the low noise level rating.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the Japanese yen falling to a 34-year low against the dollar and then rallying sharply. It mentions the impact on USD/JPY exchange rate and bond yield differentials between the US and Japan.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article primarily focuses on the financial market impact of the Japanese yen’s decline and the factors driving it, without mentioning any extreme events or their impact.
Private Companies: SPI Asset Management
Key People: Masato Kanda (Japan’s top currency official), Stephen Innes (Managing Partner at SPI Asset Management)
www.marketwatch.com 
