Item 1 of 2 Japanese yen and U.S. dollar banknotes are seen with a currency exchange rate graph in this illustration picture taken June 16, 2022. REUTERS\/Florence Lo\/Illustration\/File Photo<\/p>\n
[1\/2]Japanese yen and U.S. dollar banknotes are seen with a currency exchange rate graph in this illustration picture taken June 16, 2022. REUTERS\/Florence Lo\/Illustration\/File Photo Purchase Licensing Rights, opens new tab<\/a><\/p>\n NEW YORK, Jan 23 (Reuters) – The New York Federal Reserve conducted rate \u200bchecks on the dollar\/yen pair around midday on \u200cFriday, a source familiar with the matter told Reuters.<\/p>\n Analysts say the move may have triggered a sharp drop in the greenback and could signal that U.S. and Japanese monetary \u200cauthorities may be preparing to act after weeks \u200bof sustained dollar strength against the yen.<\/p>\n Sign up here.<\/a><\/p>\n The dollar slid from around 157.50 yen at midday to a \u200dfour-week low of 155.66 in the afternoon. It was last down 1.6% at 155.85 yen.<\/p>\n Acting as fiscal agent for the U.S. Treasury, \u2060the NY Fed carried out the rate checks, \u200dthe source said.<\/p>\n The U.S. Treasury did not respond to Reuters\u2019 requests \u200cfor \u200ccomment.<\/p>\n A rate check, in which officials ask dealers what price they would get if they entered the market, is something monetary authorities can use to signal their \u2060readiness to do \u2060so.<\/p>\n Traders have \u200bbeen wary of intervention by Japanese authorities as the yen has approached 160 per dollar.<\/p>\n Whether actual intervention took place might be \u200dinferred from data the Bank of Japan is set to release on Monday at 1800 JST (0900 GMT).<\/p>\n Analysts said U.S. monetary authorities \u200bstepping into what began as a \u200dJapanese affair is not typical, but it is not without precedent.<\/p>\n Reporting \u200bby Gertrude Chavez-Dreyfuss; Editing by Chris Reese and Lisa Shumaker<\/p>\n Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n