The Currency analytics
By Pankaj K
Yen jumped hard Tuesday. Sanae Takaichi's surprise political victory sent currency traders scrambling as speculation mounted about potential government intervention in forex…
Takaichi's win pretty much caught everyone off guard, but her track record on currency policy didn't.
The yen's surge came as other Asian currencies basically treaded water, creating an unusual divergence that had traders scratching their heads. China's yuan held steady at 6.
India's rupee weakened to 83.50 against the dollar, continuing its slow slide amid trade deficit worries that just won't go away.
Indonesia's rupiah stayed flat at 15,200 per dollar.
South Korea's won didn't budge much either, holding around 1,180 per dollar as investors waited for export numbers due later this week.
The real action centered on what Takaichi might actually do. Goldman Sachs put out a note Tuesday morning warning clients to "brace for volatility" in yen crosses, with analysts…
Finance Minister Shunichi Suzuki didn't help calm nerves when he told reporters Tuesday that officials are "closely monitoring" currency moves and remain "ready to take necessary…
European markets shrugged off the Asian drama. The euro held at 1.09 against the dollar, with traders there more worried about inflation data due Thursday than Japanese currency…
Japanese exporters weren't celebrating the stronger yen, that's for sure. Toyota shares dropped 2.
The Bank of Japan's next policy meeting is February 28, and Governor Haruhiko Kuroda will probably face tough questions about coordination with the government on intervention.
Singapore's dollar traded at 1.35 against the greenback, with the Monetary Authority there maintaining its current policy stance. Australia's dollar hovered around 0.
Gold dropped to $1,820 per ounce as the stronger yen reduced demand for alternative safe havens.
Nobody from Japan's Finance Ministry responded to requests for comment about specific intervention plans or timing.
Bank of Japan data shows the currency hasn't traded above 135 since October, making Tuesday's move particularly significant for carry trade positions.