SINGAPORE/LONDON–The yen rose sharply after hitting its weakest level in three decades against the U.S. dollar with markets on edge about possible intervention after the Bank of Japan kept interest rates on hold on Friday.
In a volatile trading day, the yen rose suddenly to 154.97, after hitting minutes earlier its lowest level of 156.82 per dollar since 1990.
The sudden jump left traders on high alert for signs of intervention.
After a two-day meeting, the Bank of Japan left its short-term interest rate target at 0-0.1% on Friday and made small upward adjustments in its inflation forecast. Investors had not expected a policy shift but took the decision as confirmation that only small moves lie ahead.
BOJ Governor Kazuo Ueda said the weak yen so far has not had a big impact on the inflation trend.
The yen also slid to its weakest…
