The yen’s depreciation past levels that triggered Japan’s intervention in the currency market last year is making some investors nervous about buying the nation’s stocks.
The Nikkei 225 Stock Average slid as much as 1.4% on Thursday even as the yen weakened for nine straight days, touching a nine-month low of 146.56 per dollar. Intervention happened last year when Japan’s currency hit 145.90.
While that may not immediately trigger action from authorities, traders are on guard for verbal intervention. Government officials may consider the speed of currency movements to be more important than specific levels.
Read the full story on Bloomberg here.