An exchange traded fund pegged to the yen’s fluctuations versus the U.S. dollar fell 3% in preopen trading Monday after Japan again intervened to cool the currency’s rise and protect its exporters. It is the third time Japan has stepped in to halt a rising yen this year.
CurrencyShares Japanese Yen Trust (NYSEArca: FXY) was off 3% before the bell.
There has been speculation Japan would act to weaken the yen after it hit post-World War II highs against the dollar. [Yen Spike]
The move comes after a closely watched central bank meeting last week. [Yen ETFs in Focus]
On Monday, Finance Minister Jun Azumi said Japan would continue to step into the market until it was satisfied with the results, Reuters reported. “I don’t think intervention has ceased yet,” Fumihiko Igarashi said in the report.