Intervention to support the Japanese yen could end up fueling demand for the U.S. dollar. Bannockburn's Marc Chandler says that traders are buying puts as protection against a pro-yen intervention. That type of insurance would skyrocket in value if the intervention materializes. Chandler expects the profits to be used to buy dollars, doubling-down on bets that the greenback will continue to rise. The yen is at a 40-year low, at 162.64 per dollar. The greenback strengthens on robust U.S. indicators and forecasts of a hawkish Fed. The WSJ Dollar Index rises 0.1%, with the dollar gaining 0.4% against the yen and 0.1% versus the euro and the Swiss franc. (paulo.trevisani@wsj.com; @ptrevisani)
Dow Jones Newswires
Yen Intervention Seen as Unlikely to Cool Dollar Demand — Market Talk
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Intervention to support the Japanese yen could end up fueling demand for the U.S. dollar. Bannockburn's Marc Chandler says that traders are buying puts as protection against a pro-yen intervention. That type of insurance would skyrocket in value if the intervention materializes. Chandler expects th…