Yen Weakens Back into 159 After U.S.-Japan Intervention
The value of the yen, which had surged to the 155 range per dollar due to joint foreign exchange market intervention by the United States and Japan, has fallen back to the 159 range in just five trading days, giving up more than half of its gains. Despite a plunge of over 70% in yen short positions
The yen's value has retreated back into the 159 range per dollar following a joint U.S.-Japan foreign exchange market intervention. In just five trading days, the yen lost more than half of its gains, dropping from the 155 range to the 159 range. Despite a 70% plunge in yen short positions over the week, it appears challenging to reverse the exchange rate trend solely through intervention.
The yen reached the lowest point since the intervention on Aug. 11, trading at 159.07 to 159.09 yen per dollar in the Tokyo market. The New York market saw the rate peak at 159.36 yen on Aug. 10 before falling to 159.25 to 159.35 yen by Aug. 11. The yen's value, initially boosted by the U.S.-Japan intervention, is now rapidly returning to its pre-intervention level.
The intervention caused a 70% drop in yen short positions from the previous week to just 45,473 contracts in the non-commercial sector. While the intervention pressured speculative forces to buy back their yen short positions, the yen's current weakness suggests underlying real demand, driven by import payments and other transactions in dollars.
Analysts expect heightened vigilance for additional intervention if the yen continues to weaken below the 160 yen per dollar level.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
