Yen down as Japanese officials talk forex intervention

[NEW YORK] The yen retreated on Tuesday after Japan's finance minister reiterated warnings about intervening in the foreign exchange market to counter a surge in the Japanese currency's value.

Both the dollar and the euro charged higher against the yen Tuesday after finance minister Taro Aso repeated warnings about possible action, after saying Monday that Tokyo was "prepared to intervene" in markets.

That followed recent similar comments from Prime Minister Shinzo Abe, who has warned over the negative impact of a stronger yen on Japanese firms.

"While the risk of actual intervention to weaken the yen remains low, especially ahead of a G-7 meeting in Japan later this month, the comments did prompt investors to pare exposure to the yen at least in the near-term," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange.

The British pound climbed against the dollar and the euro ahead of Thursday's Bank of England meeting.

"Sterling should be no stranger to volatility over the next 48 hours" ahead of the meeting and subsequent press conference with Governor Mark Carney, said Joe Manimbo, senior market analyst at Western Union Business Solutions.

AFP