(Bloomberg) — The yen rebounded sharply after dropping to its lowest in 34 years, spurring speculation that authorities may have intervened. European and US stock futures rose to track a positive session in Asia.
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The Japanese currency extended gains to as much as 2.1% after earlier falling past 160 per dollar for the first time since 1990. Thin liquidity due to a public holiday in the country was also cited as a reason for the volatile moves. Top currency official Masato Kanda said “no comment for now” when asked by reporters whether or not he intervened.
“The market is very jumpy and with not a lot of liquidity, the yen becomes a sharp toy to play with,” said Rodrigo Catril, a strategist at National Australia Bank. “The risk of intervention is an added factor.”
The Euro Stoxx 50 futures rose 0.4%, while contracts for the S&P 500 advanced slightly less after the US benchmark notched its best weekly…
