After spending most of week in the green, the Japanese yen took a turn for the worse on Friday thanks to comments from Japanese officials sparking intervention speculation.
Japanese Headlines and Economic data
We saw a bit of a uniform rally in the yen during the U.S. trading session, possibly on risk aversion sentiment sparked by the fall in the big U.S. tech companies and record COVID-19 related deaths across several U.S. states.
Despite the weak retail sales data, the yen rallied during the late Asia session. There doesn’t seem to be a direct catalyst, so it’s possibly a risk sentiment reaction to a round of negative economic updates from New Zealand (ANZ business outlook shows bounce vs June but bounce appears to be running out of steam) and Australia (AU June building dwelling approvals slide to eight-year low).
Japan finance minister Aso warns against ‘rapid’ yen rises – this commentary sparked speculation that the government and central bank will likely take any steps necessary to devalue their currency like direct market intervention.