The yen rebounded on Tuesday after weakening and briefly dipping below 150 yen to the dollar. That prompted traders to speculate that Japanese authorities had intervened to prop up the yen.
As the yen approaches 150 to the dollar, analysts and investors have been preparing for possible intervention.
Earlier Tuesday, the yen was trading just below that level, but fell below that level after U.S. Labor Department data released at 10 a.m. Et showed a surprisingly large increase in job openings in July. The report boosted Treasury yields and the dollar, but the yen immediately rebounded.
The Japanese government began supporting the yen in September 2022, and there is evidence that the Japanese government sold short-term U.S. Treasury bills to do so.