LONDON : The dollar was slightly weaker on Monday but remained close to an almost eight-week high, while the yen languished near the 160 level, drawing verbal warnings from Japanese authorities as intervention fears grip markets. The yen weakened to 159.94 per dollar in early trade, its lowest since April 29, when the yen touched a 34-year low of 160.
245, leading to Japanese authorities spending roughly 9.8 trillion yen to support the currency. The yen was last slightly firmer at 159.
75 per dollar after Japan's top currency diplomat Masato Kanda said on Monday authorities will take appropriate steps if there is excessive foreign exchange movement, and that the addition of Japan to the U.S. Treasury's monitoring list would not restrict their actions.
"We will firmly respond to moves that are too rapid or driven by speculators," Kanda said, but noted authorities had no specific levels in mind on when to intervene. The yen has come under renewed pressure after the Bank of Japan's (BOJ) decision this month to hold off on reducing bond-buying stimulus until its July meeting. It is down 1.
5 per cent in June. "I don't necessarily think that the act of breaking the psychological level is enough (for intervention) any more," said Simon Harvey, head of FX analysis at Monex. "Authorities have told us that they care more about the pace and disorderly moves as opposed to individual levels.
" A summary of opinions at the BOJ's June policy meeting on Monday showed some policymakers called fo.
