Yen Retreats From Highest Since 2014

The Japanese Yen rallied to the strongest level in two years on Thursday as Japan’s policy makers held rates unchanged.

But quickly retreated after Finance Minister Taro Aso said on Friday he was very concerned about one sided move in the currency and that the government will act to stop speculative moves when needed.

Japanese shares also rebounded on Friday, heading for its biggest advance in a month after U.S. equities climbed and the yen plunged amid new speculation that Britain will vote to stay in the European Union.

“With Brexit risks an important driver of currencies in the near term, dollar-yen can track lower next week,” said Joseph Capurso, a senior currency strategist in Sydney at Commonwealth Bank of Australia. “That raises the risk the Ministry of Finance may intervene to stem the recent rapid gains in the yen.”

Traders are the most bullish on the yen for the first time in six years after the Bank of Japan held rates steady on Thursday citing global risk concerns amid Britain uncertainty.

The yen lost 0.3 percent to 104.58 against the dollar as of 10:46 a.m. Friday in Tokyo, reducing this week’s gain to 2.3 percent. It rose as high as 103.55 on Thursday, its strongest price level since August 2014.

The euro gained 0.3 percent to 1.1260, while the sterling surged 0.3 percent to 1.4251. The Australian dollar gained 0.3 percent to 73.84 U.S cents.