Yen Hits Fresh 40-Year Low Versus Dollar; Traders Alert for Possible FX Intervention

The yen hit a fresh 40-year low against the dollar in Asia on Wednesday morning, keeping traders on high alert for possible currency intervention by the Japanese government. Ongoing expectations for a gradual pace of interest-rate increases by the Bank of Japan, combined with growing prospects for the Federal Reserve to raise the Fed funds rate this year, are pressuring the yen lower and the dollar higher. The dollar's fresh 40-year high against the yen is "leaving markets on watch for stronger verbal warnings or outright intervention from Japanese authorities," said Taylor Nugent, senior economist at National Australia Bank, in...