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Rate check signals high level of alarm and often precedes direct currency interventions
A fresh collapse in the Japanese yen halted on Wednesday after authorities cranked up their warnings over a drop in the currency and called traders to quiz them on market conditions.
In response, officials at the Bank of Japan phoned currency traders to inquire about market conditions — a so-called “rate check” that represents a high level of alarm, pulling the rate back down to ¥143. In the past, such checks have come ahead of instructions from the Ministry of Finance to intervene directly in the market to control the exchange rate.
https://www.ft.com/content/e7bed10d-3447...b3fdea57df
A fresh collapse in the Japanese yen halted on Wednesday after authorities cranked up their warnings over a drop in the currency and called traders to quiz them on market conditions.
In response, officials at the Bank of Japan phoned currency traders to inquire about market conditions — a so-called “rate check” that represents a high level of alarm, pulling the rate back down to ¥143. In the past, such checks have come ahead of instructions from the Ministry of Finance to intervene directly in the market to control the exchange rate.
https://www.ft.com/content/e7bed10d-3447...b3fdea57df
