The yen on Monday strengthened to its highest level since February, surpassing the peak reached after coordinated intervention by Japan and the U.S.
The Japanese currency suddenly extended gains, up as much as 1.4% to ?154.06 against the dollar in London trading. There was no clear driver for the move, with some traders pointing to the U.S. holiday helping to exaggerate the moves while others mentioned the break of the key ?155 per dollar level as a reason.
“The yen’s break below 155 is significant given the level previously acted as a floor following past intervention episodes,” said Masahiko Loo, senior fixed income strategist at State Street Investment Management.
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