The yen briefly weakened beyond ¥150 against the dollar again as the wide yield gap between Japan and the United States continues to weigh on this year’s worst-performing major currency.
It touched ¥150.11 per the greenback in early Asian trading on Monday before quickly recovering amid weight from options-related dollar selling and suggestions of algorithmic transactions. It was little changed at ¥149.87 at 11:30 a.m. in Tokyo.
Traders are wary of betting on further depreciation given the risk of intervention from authorities in Japan. Finance Minister Shunichi Suzuki said last week that it is important to have stability in foreign exchange markets and for them to reflect fundamentals.