The yen’s surge left the Japanese currency at 158.88 per U.S. dollar on September 3, after a sudden 0.9% overnight gain put traders on alert for possible action from Tokyo.
Currency strategist Carol Kong of Commonwealth Bank of Australia told Reuters she did not believe the move represented direct intervention.
However, she said some traders suspected Japanese authorities may have conducted a rate check. The yen also strengthened against European currencies on September 2.
Reuters reported that the euro fell about 1% against the yen, while sterling dropped 1.15%. The latest move followed a rare joint yen-buying intervention by the United States and Japan on July 31, according to Reuters.
Since then, wide interest-rate gaps, fiscal concerns and higher energy prices have continued to weigh on Japan’s currency. The stronger yen pressured the U.S. dollar in Asian trading.
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The dollar index slipped 0.04% to 99.56 on September 3, while the euro traded at USD 1.1589 and sterling at USD 1.3482, Reuters data showed.
Investors are now focused on the September 4 U.S. nonfarm payrolls report. Economists surveyed by Reuters expect employers to have added 56,000 jobs in August after payrolls fell by 23,000 in July.
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The U.S. unemployment rate is forecast to remain at 4.1%. Reuters reported that markets were pricing a 61% probability of a Federal Reserve rate increase in September.
Kong said a significantly weaker employment report might be needed to materially reduce expectations for near-term Federal Reserve tightening.
