Japanese Yen: Joint intervention lifts JPY against US Dollar – Rabobank
Rabobank’s Senior FX Strategist Jane Foley highlights that Japanese authorities benefited from the post-FOMC US Dollar (USD) drop, which eased pressure on the Japanese Yen (JPY).
Rabobank's Jane Foley points out that Japan's intervention in the FX market was advantageous due to the decline in the US Dollar following the July 29 FOMC meeting. The report reveals that speculative long USD positions were unwound after the Fed meeting, and Japan's Ministry of Finance's intervention in USD/JPY amplified the move.
US Treasury cooperation via the FIMA Repo Facility helped prevent forced sales. Japan had not intervened since late May, so the intervention came as a relief. The USD's reaction to the Fed meeting was unfavorable, with profit-taking becoming inevitable. CFTC data reveal that long USD positions had reached their highest level since September 2024.
The intervention by Japan's Ministry of Finance in USD/JPY helped lower the USD, benefiting both the Japanese authorities and US Treasury.
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