The yen recovered from its slide against the dollar during Tokyo trading Wednesday, rebounding to 145.90-93 as of 5 p.m. as compared to its temporary drop to eight-year-low levels Tuesday.
The rise in the yen’s value was prompted by market fears that authorities might intervene in trading in the hope of stemming the Japanese unit’s rapid decline against the greenback.
On Wednesday afternoon, financial authorities in Tokyo effectively moved to buttress these concerns by hinting at the possibility of intervention.
A Finance Ministry source said Japanese monetary authorities consider an exchange rate of around 130 yen to the dollar appropriate, indicating that regulators might move to prop up the yen.
“Japan is resolved to take firm action to cope with the yen’s current weakness,” the source said. s of 9:30 a.m. in London, the yen-dollar rate stood at 145.85-95 yen.
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