USD/JPY: Yen soft as intervention absent – UOB

UOB Global Economics & Markets Research reported that USD/JPY reversed intraday losses to end flat at 157.41. The Japanese Yen weakened following the Ministry of Finance's confirmation of no foreign exchange intervention between August 27 and September 28, following a record $98.7 billion coordinated US-Japan operation in July. US yields and strong Dollar conditions continue to pressure the Japanese Yen.

In South Korea, the yield curve declined across all maturities after the government extended its emergency buyback warning: the 2-year yield slipped to 3.977%, the 10-year to 4.402%, and the 30-year to 4.509%. Across FXStreet Insights, AUD/USD consolidated near a two-month low, with the US PCE data dampening October Fed hike expectations.

Meanwhile, Australia's trade surplus contracted sharply in August. Despite softer-than-expected US inflation data, the US Dollar remained strong due to elevated bond yields and geopolitical tensions. Gold struggled to gain momentum as it hovered around $4,200. Hyperliquid (HYPE) fell 2% in the Asian session, trimming earlier gains.

EUR/USD dropped to its weakest level since May 2025, driven by US Dollar strength, geopolitical worries, and rising energy prices in Europe.