US-Japan yen intervention is another defeat for Tokyo

The Japanese yen has seen a significant drop following the US-Japan currency intervention, raising doubts about the effectiveness of the move. The currency, which had climbed to 155 per dollar after the joint action, is now trading at 159, according to sources. This decline has sparked skepticism among traders, who are uncertain if the yen can regain strength without further policy action.

The probability of a Bank of Japan interest rate hike is now estimated at 50%, as indicated by Russell Investments and Pioneer Investments strategists.

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