Sharp Yen Swing Has Traders on Watch for Post-Fed Japan Reaction

  • Japanese currency gave up gains of almost 2% Thursday
  • Local markets on holiday, increasing risk of illiquid trading
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Sharp swings in the yen in the wake of a hawkish Federal Reserve had currency traders on edge Thursday, with Japan on holiday and the threat of intervention still looming.

The Japanese currency erased a gain of almost 2% Wednesday as the greenback quickly rebounded from initial losses and US stocks did an about turn. It rebounded 0.5% Thursday only to pare that move to trade little changed around 147.90 per dollar.