LONDON, July 30 (Rtrs) - The yen briefly jumped against the
dollar on Thursday in a move analysts said did not bear the
hallmarks of the official intervention traders are braced for,
but rather unease following a dramatic Federal Reserve meeting
and a day before the Bank of Japan meets.
The dollar dropped as low as 162.57 yen as its decline from
its day high of 163.7 yen suddenly accelerated during London
trade. It then rebounded and was last 162.7.
Traders are alert to the prospect of intervention from Japan
to prop up its stubbornly weak currency, though the move was
smaller than recent dramatic bouts of yen strengthening that
have followed official moves.
"It doesn't look like intervention just a broad-based
(dollar) selloff," said Lee Hardman senior currency analyst at
MUFG. "The market is still reacting to the Fed's update
yesterday."
A divided Fed left rates unchanged on Wednesday even as U.S.
central bank chief Kevin Warsh pledged an unwavering commitment
to bring inflation down, a message that left markets confused
about just what he was prepared to do and piled upward pressure
on Treasury yields.