BOJ Conducts Rate Check, Possibly for Forex Intervention

Economy

Tokyo, Sept. 14 (Jiji Press)--The Bank of Japan checked with financial institutions about foreign exchange rates on Wednesday, following the yen's sharp drop, market sources said.

The BOJ was possibly preparing to conduct yen-buying and dollar-selling intervention in the currency market for the first time in some 24 years.

The rate check was conducted when the dollar was moving around 144.90 yen, according to the sources. Following news on the BOJ move, the greenback dropped to around 143.30 yen in late Tokyo trading.

The last time when Japan carried out such market intervention was June 1998, when the dollar stood above 146 yen.

As the U.S. currency surged as high as 144.96 yen early in the morning on Wednesday, Japanese Finance Minister Shunichi Suzuki spoke to reporters twice later in the day, saying, "We'll do it (market intervention) promptly and without hesitation if we decide to do it."

[Copyright The Jiji Press, Ltd.]

Jiji Press Bank of Japan