Japanese Yen holds firm after coordinated US-Japan intervention
USD/JPY steadies on Monday after a sharp decline at the weekly open fuelled speculation that authorities may have stepped into the market again following last week’s coordinated intervention by Japan and the United States (US).
Japanese Yen steadies Monday after sharp decline fuels speculation of coordinated intervention. At current rate of 156.80, down 0.35% on day after hitting intraday low of 155.23 since May 6. Japan and US jointly bought Yen on Friday to curb volatility, with Bank of Japan spending $58.97B in first intervention and another $36.58B during joint effort with US.
Japan Finance Minister and US Treasury Secretary warn further joint intervention won't be ruled out. However, intervention hasn't altered Yen's fundamentals such as Japan's loose financial conditions and low interest rates. Meanwhile, US Dollar shows signs of stabilization, limiting further gains in Yen.
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