Japanese Yen: Policy signals support JPY against US Dollar - Commerzbank
Commerzbank’s Thu Lan Nguyen argues that recent interventions by Japanese authorities and the US Treasury have largely lost impact, with the Japanese Yen giving back gains against the Dollar and US yields returning to prior levels.
Commerzbank's Thu Lan Nguyen states that recent policy interventions by Japanese authorities and the US Treasury have lost their impact on the Japanese Yen against the US Dollar. The Yen has already lost some gains it made after a historic intervention at the end of July. US Treasury yields have also returned to their previous levels.
Fiscal concerns remain a headwind for the US Dollar, and markets continue to view USD/JPY 160 as a key line. Interventions are not solely about purchasing or selling assets but also about signaling changes in policy stance or hints at future measures. As long as governments fail to address market concerns about public debt, both the Yen and US Dollar are likely to maintain a risk premium.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
