The dollar remained weak after reaching a four-month low against a basket of currencies overnight as the Japanese yen surged on speculation of coordinated U.S.-Japan interventions to support the currency.
The Federal Reserve Bank of New York contacted potential trading counterparties on Friday for rate checks, The Wall Street Journal reported.
Rate checks are inquiries about available pricing and can precede direct currency interventions.
“In the short term, a stronger yen means a weaker dollar, which is inflationary for the U.S.,” XTB’s Kathleen Brooks said in a note.
That might create a headache for the Federal Reserve, she said. The Fed announces its next decision on Wednesday.
The DXY dollar index fell 0.5% to 97.155 after reaching a low of 96.949 overnight.