The yen slipped to the lower 155 range against the U.S. dollar on Thursday in Tokyo after another suspected yen-buying intervention by Japanese authorities sent the currency to as high as 153 overnight.
At 5 p.m., the dollar fetched 155.48-51 yen compared with 154.55-65 yen in New York and 157.88-90 yen in Tokyo at 5 p.m. Wednesday.
The yen gave up some gains as Japanese importers bought the dollar, dealers said. The yen was hovering in the upper 157 zone before the authorities apparently conducted an operation to arrest the yen's decline for the second time this week.
The latest move followed a suspected intervention on Monday after the yen dropped to the 160 level versus the dollar at a fresh 34-year low.
"With no other major headlines (to influence the exchange market), and the yen being the sole currency to rapidly strengthen against the dollar, it is natural to assume that there was an intervention," said Yukio Ishizuki, senior foreign exchange strategist at Daiwa Securities Co.
The yen's latest jump came after the U.S. Federal Reserve on Wednesday decided to hold its benchmark interest rate steady as widely expected. Fed Chair Jerome Powell said it is "unlikely that the next policy rate move will be a hike," although some had speculated that he might hint at raising rates amid persistent inflation.
"The remarks from Powell were not as hawkish as some had expected," Ishizuki said, noting that the yen had already been rising against the dollar before the possible yen-buying intervention.
"The suspected intervention this time indicates (the Japanese authorities) could step in at any point," even when the yen is not sharply depreciating against the dollar, he added.
The euro was quoted at $1.0715-0716 and 166.61-65 yen at 5 p.m. against $1.0708-0718 and 165.44-54 yen in New York and $1.0661-0662 and 168.32-36 yen in Tokyo late Wednesday afternoon.
Japan's benchmark 10-year government bond yield rose 0.010 percentage point from Wednesday's close to 0.900 percent, as the debt was sold to adjust positions ahead of auctions for 10-year and 30-year bonds by the Finance Ministry next week.
Tokyo stocks ended slightly lower, with investors largely retreating to the sidelines ahead of a four-day holiday in Japan as well as the release of U.S. unemployment data for April on Friday.
The 225-issue Nikkei Stock Average ended down 37.98 points, or 0.10 percent, from Wednesday at 38,236.07. The broader Topix index finished 0.87 point, or 0.03 percent, lower at 2,728.53.
On the top-tier Prime Market, decliners were led by marine transportation, air transportation, and warehousing and harbor transportation service issues.
High-tech issues were pressured by selling after an overnight decline on a key U.S. semiconductor index, while firm U.S. stock futures and bargain-hunting supported the market's downside, analysts said.
Related coverage:
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Japan likely conducted forex intervention worth around 5 tril. yen
BOJ's March minutes show no urgency to raise rates further
