Japan risks Trump’s ire as Iran war fallout sparks currency intervention

Bird's-eye view of central Tokyo including Tokyo Tower at sunrise hours. Vladimir Zakharov | Moment | The Japanese yen surged against the dollar on Friday, extending gains that came the previous day after officials in Tokyo said they stood ready to intervene in the foreign exchange market. Friday saw the Japanese currency rise as much as 0.7% versus the greenback, extending a Thursday rally that saw it jump by as much as 3% against the dollar. By 5:35 a.m. ET, the yen had pared a lot of Friday's gains, but erased the losses incurred since the U.S.-Iran war began on Feb. 28. Stock Chart Icon Stock chart icon USD/JPY On Thursday, Reuters reported that Japanese officials had stepped in to prop up the faltering yen by buying the currency, citing anonymous sources. "I won't comment on what we'll do ahead. But I will tell you that Japan's Golden Week holidays ​have just started," Japan's top foreign exchange diplomat Atsushi ​Mimura later told reporters , according to the news agency, fueling speculation that further intervention was in the cards. It came after Japanese Finance Minister Satsuki Katayama's said on Thursday that officials were nearing "decisive action" in the FX market, as the yen fell to a 1-year low of around 160.72 against the dollar. A weak yen can provide a boost to the domestic economy — for example, by making Japanese goods more attractive to overseas buyers. …