Japanese Yen: US trade focus shapes intervention – Societe Generale
Societe Generale’s Kit Juckes, drawing on Scott Bessent’s perspective, argues that recent coordinated US-Japan action in the Japanese Yen is part of a broader US trade strategy.
Societe Generale's Kit Juckes posits that recent coordinated actions between the US and Japan regarding the Japanese Yen are part of a larger US trade strategy. Japan aims to stabilize the Yen and curb import costs, while the US seeks to curb Dollar appreciation against key Asian trade partners, whose currencies have weakened in real terms.
The US's intervention is not merely about Japan's stability but a broader strategy to prevent further Dollar appreciation relative to the region. This move could potentially turn the trend around, as Japan, China, and South Korea together make up about 18% of US trade, compared to 16% for the Eurozone.
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