The dollar was supported against the yen in Asia today as the market reacted to repeated moves by the Bank of Japan to stem a further rise in the Japanese currency.
The dollar was supported against the yen in Asia today as the market reacted to repeated moves by the Bank of Japan to stem a further rise in the Japanese currency.
On Friday, the central bank stepped in a number of times to sell yen for dollars, the third intervention by Japanese authorities in just over a week.
"I think they want to prevent the yen from breaking the 124 level," said Mr Noriyuki Kato, head of the foreign exchange section at ING Barings in Tokyo. "We are not in the mood to challenge further intervention, at least in Tokyo."
Japanese officials kept up their warnings with the Finance Ministry's Mr Haruhiko Kuroda saying he was watching the currency market carefully.
The top financial diplomat added that he has heard there is no change in the currency policy of the United States, which has been biased toward a strong dollar.
However, the dollar's rise is expected to be limited especially due to strong yen-buying offers from Japanese exporters around 124.50 and 125, traders said.
"Though it has gotten more difficult to sell the dollar, there is no change in the fact that its topside is still heavily weighed," a dealer at a foreign bank said.
Traders said they expected little movement since the London market was closed for a holiday.