Yen rises sharply to 155 level against U.S. dollar on intervention speculation

TOKYO — The yen rose sharply Friday afternoon against the U.S. dollar briefly reaching the mid-155 level from the lower 157 range, amid a cautious mood following an overnight surge of about 5 yen on possible intervention, during the Golden Week holiday when markets are prone to sharp moves.

The yen briefly climbed to 155.50 shortly before 4 p.m. after trading in the lower 157 range earlier in the afternoon. The yen later weakened to the mid-156 level.

At 5 p.m., the dollar fetched 156.61-63 yen compared with 156.58-68 yen in New York and 160.13-15 yen in Tokyo at 5 p.m. Thursday.

The euro was quoted at $1.1734-1735 and 183.77-81 yen against $1.1727-1737 and 183.65-75 yen in New York and $1.1679-1681 and 187.02-06 yen in Tokyo late Thursday afternoon.

The yield on the benchmark 10-year Japanese government bond ended down 0.015 percentage point from Thursday's close at 2.500 percent as the debt was bought back on the stronger yen.

"Perhaps currency intervention was conducted at a time when the market believed it would not happen today," said Yuzo Sakai, chief manager of business planning at Ueda Totan Forex Ltd., referring to remarks by Atsushi Mimura, vice finance minister for international affairs, who implied the possibility of intervention on Friday.

But he added, "There is also a possibility that large-scale dollar-selling and yen-buying orders amid thin trading pushed the yen into 155."

Japanese authorities conducted yen-buying intervention overnight, according to a source close to the matter, pushing the Japanese currency into the 155 level from the upper 160 range.

Earlier in the day, Mimura declined to comment on whether the authorities intervened in the market.

Stocks rose in Tokyo, as investor sentiment improved on favorable earnings results both in Japan and the United States, as well as buybacks after recent declines.

The 225-issue Nikkei Stock Average ended up 228.20 points, or 0.38 percent, from Thursday at 59,513.12. The broader Topix index finished 1.52 points, or 0.04 percent, higher at 3,728.73.

On the top-tier Prime Market, the main gainers were air transportation, wholesale trade and land transportation issues.

The Topix index and most shares in the Nikkei fell in early trade on the yen's surge and elevated crude oil prices, although rises in West Texas Intermediate crude oil futures eased after U.S. President Donald Trump said he would wait for Iran's response on peace negotiations.

Meanwhile, the Nikkei stock index stayed in positive territory, lifted by heavyweight technology shares following overnight gains on Wall Street, after favorable earnings results from some major technology companies.

"The earnings release of trading companies continued in the afternoon...which supported the market," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.

However, stocks were pressured before the close as investors adjusted positions ahead of a five-day weekend.

© KYODO