Yen Traders Brace for Intervention as Trump Backs Japan
The yen advanced sharply on Monday amid high alert in markets for more intervention after Japan and the US confirmed that they had conducted coordinated operations last week. Oxford Economics Head of Asia Economics Louise Loo shares what we know about the developments. (Source: Bloomberg)
The yen has risen sharply in recent trading, with markets on high alert for further intervention. This comes after Japan and the US confirmed they had conducted coordinated operations last week to shore up the currency. The yen edged about 0.2 per cent higher to 157.16 per dollar in early Sydney trading.
According to the Straits Times Business, Japan's Finance Ministry and the US Treasury Department are now working together to a degree unseen in decades to support the yen. Finance Minister Satsuki Katayama may announce the partnership as early as August 3. The collaboration was signalled indirectly by Treasury Secretary Scott Bessent via the media.
The joint efforts have already shown significant impact, with the yen rebounding dramatically in just two days at the end of last week. Authorities used a combination of direct purchases in the market and calls to ban certain trades to reverse more than two months of losses in the yen.
Brief written by urgent.news from Bloomberg, Straits Times Business — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
