1503 ET - Fed Chairman Warsh's remarks after yesterday's hold are seen as dovish, and that may have pushed the BoJ to step in to boost the yen, TS Lombard's Rory Green writes. Markets speculate that intervention may be behind a 2.7% decline of the dollar versus the yen. Green says a dovish Fed may have offered an opportunity for the Ministry of Finance to intervene. He also notes that previous interventions have been followed by interest rate increases. "A move tomorrow would still be a surprise, but the meeting is now live," Green says. The strengthening yen comes as the WSJ Dollar Index falls 1% and the greenback weakens 0.5% against the euro.
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