The yen is hovering near a key psychological level of 150 against the dollar after the yield gap with the US widened on hotter-than-expected inflation data.
The currency traded just below that rate versus the greenback on Friday afternoon in Asia amid speculation Japanese authorities will step in to support it should the yen suddenly weaken. A senior finance ministry official said that the Group of Seven reaffirmed its stance that excessive moves are problematic, during a meeting Thursday in Morocco.
“Close attention is being paid to the 150 level,” said Yuta Suzuki, vice president at MUFG Bank Ltd. in New York. “Investors probably don’t want to buy dollar-yen above 150 primarily because of concerns about intervention.”
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