CFTC data show that net long US dollar positions narrowed by approximately 40% after the coordinated intervention. Trends against the euro also changed, while gold prices resumed their rise immediately after the intervention. These developments point to a renewed move away from the US dollar.
In CFTC data from roughly one month after the coordinated intervention, net long US dollar positions had fallen to 310,000 contracts, down approximately 40% from a peak of around 50,000 contracts. This movement includes a comparison with conditions immediately before the Japan-US coordinated intervention.
Regarding the euro, a certain degree of net selling against the US dollar was observed before the intervention, but net short euro positions narrowed through the week of 24 August. After the rate check, there was also a tendency for net long euro positions against the US dollar to expand.
The rate check and coordinated intervention are viewed as US cooperation to curb yen depreciation, but they also appear to have triggered a sharp expansion in US dollar selling and euro buying. It has been reported that euros were sold as consideration for the intervention, but positions show a narrowing of both net long US dollar positions and net short euro positions.
A renewed rise in gold prices was also observed during this period. Alongside movements in gold, regarded as a representative destination for funds moving away from the US dollar, efforts to curb yen depreciation may once again have created an uneven distribution of funds.