Sudden yen jump stokes rate check speculation

[TOKYO] The Japanese yen jumped suddenly on Tuesday (May 12), stoking speculation of a “rate check,” which is often a precursor to currency intervention.

The yen shot from about 157.75 to the dollar to 156.75 in a space of a few minutes. Brokers said the move, about half of which was soon unwound, was likely a rate check.

Japan’s Ministry of Finance declined to comment. Sources have told Reuters Japan has been buying yen in recent weeks.

The US and Japan maintain “constant and robust” coordination in combating undesirable, excessively volatile currency moves, US Treasury Secretary Scott Bessent said in Tokyo on Tuesday, a remark seen broadly as consent for Japan’s yen buying. REUTERS