Yen Rebounds After Weakening to Level of Suspected Intervention.

The yen has rebounded after weakening to a level that prompted suspected intervention by Japan to support the currency. The yen's weakness is due to the wide gap in yields between Japan and other major economies, which has led investors to seek higher returns elsewhere. Despite rising Japanese bond yields, pressure on the yen has not diminished. The yen has also depreciated against European currencies and is near its lowest level since 2008 against the pound. Japanese authorities have not confirmed whether they intervened in the currency market, and there may be pushback from trading partners if they do. US Treasury Secretary Janet Yellen has stated that currency intervention should be used sparingly and with fair warning. The market expects a rate hike by the Bank of Japan in July. [Extracted from the article]