Ministry of Finance director general Tatsuo Yamasaki called the overnight movement in the USD/JPY rate ‘quite rapid’ but ‘market determined’. ‘Japan’s monetary policy is not targeting exchange rates’, ‘is carefully watching Forex market moves, ‘no need to intervene anytime soon’.
Dollar-yen opened near 97.00, traded up to 97.50 where it ran into resistance. Mr. Yamasaki’s comments spurred renewed selling interest pushing the currency pair to a 96.30 session low.
Aussie-dollar briefly breached the NY session low of 0.9470 touching 0.9465 before recovering to 0.9500
Euro-dollar remained contained to a 1.3235 to 1.3260 range.
Gbp-dollar is trading at 1.5600, right in the middle of its 1.5580-1.5620 session range.
With US payrolls data just ahead, traders expect a certain amount of consolidation as the market braces for a possible surprise reading.