Yen Surges as BOJ Looms, Traders Cite Robots, Retweets, Misorder
- Dollar-yen volatility at highest since 2008 financial crisis
- ‘No guarantee the yen will weaken’ if BOJ eases: Ueda Harlow
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The yen surged amid traders’ expectations of heightened volatility with the Bank of Japan due to hand down its most anticipated monetary policy decision since Haruhiko Kuroda’s first as governor in April 2013.
Japan’s currency rose as much as 1.8 percent to 103.41 per dollar before trading 1.3 percent stronger at 103.95 as of 11:05 a.m. in Tokyo. It gained 1.3 percent to 115.09 per euro. Algorithmic platforms were partly blamed for the moves, according to traders who asked not to be identified because they aren’t authorized to speak publicly. Overnight implied volatility for the dollar-yen -- the world’s second-most traded currency pair -- climbed 40 percentage points on Thursday to 53 percent, the highest level since 2008.