Guess there must have been some serious month-end demand for USD/JPY today. Not sure if it was organic or was engineered by our friends at the Ministry of Finance in order to allow corporates to revalue their books at the end of the quarter. I would have expected them to hold off until the end of the Japanese fiscal year on Oct 31 before trying to push the dollar up. The spent over $100 bln to accomplish that goal last year to little lasting effect…
We’re up above 78.00 at the moment having spent much of the US session grinding higher. The buck was firm during the risk-off phase this morning and is even firmer now that risk aversion has eased following the Spanish stress test.