British Pound Tumbles Against Yen on Suspected Currency Intervention
GBP/JPY fell 2.4% to near 213.20 on Thursday as a suspected yen intervention drove the Japanese currency higher, eclipsing the Pound's reaction to the BoE's monetary policy.
The British Pound came under heavy selling pressure against the Japanese Yen on Thursday, with the GBP/JPY cross plummeting around 2.4% to trade near 213.20. The sudden surge in the Yen, suspected to be the result of official intervention, overwhelmed market participants and overshadowed the Pound's response to the Bank of England's latest monetary policy stance.
The sharp move highlights the growing volatility in the FX market as Japanese authorities appear to be defending the Yen's value. The Bank of England's policy update, while potentially influential for the Pound against other currencies, took a back seat to the intervention-driven flows.
Source: FXStreet Forex News