LONDON, Aug 7 (Reuters) – The yen jumped suddenly against the dollar again on Friday after a surprisingly weak U.S. employment report, with traders alert \u200cto the prospect of intervention just a few days after Japanese and \u200cU.S. authorities jointly stepped into the foreign exchange markets to lift the stubbornly weak Japanese currency. <\/p>\n
The dollar \u200bfell by as much as 1.1% to 156.68 and was last trading at 157.16, well away from the 40-year high of 163.99 hit in July. <\/p>\n
It was not immediately clear whether Japanese authorities were involved, although analysts said the weakness in the jobs data could \u200cbe reason enough to sell \u2060the dollar. <\/p>\n
“The scale of the undershoot on payrolls means it makes sense for the dollar to be falling \u2014 look at the short \u2060end of the U.S. yield curve \u2014 so the currency moves look like they are fundamentally driven,” Lee Hardman, senior currency analyst at MUFG said referring to the sharp drop in \u200b2-year \u200bTreasury yields. <\/p>\n
“It’s very rare you get these negative \u200bprints, so it’s a big \u200cdownside surprise that has definitely put a dampener on expectations for the Fed and we’d expect to see a significant reaction and a broad based dollar selloff.” <\/p>\n
Nonfarm payrolls decreased by 23,000 jobs last month after a downwardly revised 20,000 increase in June, the Labor Department’s Bureau of Labor Statistics said in its closely watched employment report on \u200cFriday. Economists polled by Reuters had forecast payrolls \u200brising 80,000 after advancing by a previously reported \u200b57,000 in June. Estimates ranged from \u200bas low as 10,000 to as high as 140,000 jobs \u200cadded. <\/p>\n
Just after the release of the payrolls \u200bdata, the Japanese finance \u200bminister said Washington and Tokyo had been “closely communicating” and would not hesitate to intervene. <\/p>\n
The threat of intervention has loomed large this week after Japan and \u200bthe United States conducted coordinated \u200cyen-buying intervention last Friday, confirming a rare bilateral action to halt the \u200byen’s slide. <\/p>\n
(Reporting by Sophie Kiderlin, Satoshi Sugiyama and Rae Wee, additional reporting \u200bby Alun John; editing by Amanda Cooper) <\/p>\n","protected":false},"excerpt":{"rendered":"LONDON, Aug 7 (Reuters) – The yen jumped suddenly against the dollar again on Friday after a surprisingly…\n","protected":false},"author":2,"featured_media":70568,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[11921,8,12203,33,45514],"class_list":["post-70567","post","type-post","status-publish","format-standard","has-post-thumbnail","category-japan","tag-intervention","tag-japan","tag-japanese-authorities","tag-nihon","tag-nonfarm-payrolls"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/70567","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/comments?post=70567"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/70567\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media\/70568"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media?parent=70567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/categories?post=70567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/tags?post=70567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}