SINGAPORE, May 4 (Reuters) – The yen suddenly jumped against the dollar in Asia trade on Monday, with traders on alert for another bout of intervention after Tokyo likely stepped into the market to shore up the Japanese currency last week.
The dollar was down 0.54% at 156.22 yen, having fallen nearly 0.9% to a low of 155.69 at one point in choppy trade. Trading was thinned with markets in Japan closed for a holiday.
Investors were wary of further intervention from Japanese authorities, after central bank data on Friday showed Tokyo may have spent as much as 5.48 trillion yen ($35 billion) bolstering its embattled currency last week.
“It could be them again,” Nick Twidale, chief market strategist at ATFX Global in Sydney, said of Monday’s move.
“Certainly not to the same extent as last week but reinforcing their stance that they won’t accept a weak yen.”
Japan intervened to prop up the yen against the U.S. dollar on Thursday, its first official currency action in nearly two years, two sources familiar with the matter told Reuters.
(Reporting by Rae Wee; Editing by Himani Sarkar and Shri Navaratnam)
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