The yen fell to the ¥160 range against the dollar, with estimates indicating that the amount received when exchanging into Taiwan dollars would be approximately ¥23,556 higher at month-end. Reports also covered remarks by the Federal Reserve and the scale of Japan’s foreign-exchange intervention.
The yen fell back into the ¥160 range against the dollar, while Taiwan Bank’s cash selling rate for yen stood at 1 yen = 0.2011 Taiwan dollars. Exchanging 100,000 Taiwan dollars into yen would yield approximately ¥497,265, about ¥23,556 more than at the 3 August high of 0.2111 Taiwan dollars.
As the dollar index and U.S. Treasury yields rose following hawkish remarks by the Federal Reserve chair, more than half of the yen’s gains were erased in less than four weeks, and the yen again fell past ¥160 per dollar. Expectations for an additional rate hike this year have strengthened in the market, and some believe carry-trade activity could resume.
The Japanese government spent a total of ¥15.3993 trillion on foreign-exchange intervention over the one-month period from 30 July to 26 August, setting a new record for a single month. The cumulative total has reportedly reached approximately ¥27.13 trillion. U.S. Treasury Secretary Bessent expressed support for the intervention.
Purchasing power has fluctuated significantly depending on the timing of the exchange. At the 3 August high of 0.2111 Taiwan dollars, 100,000 Taiwan dollars would have yielded approximately ¥473,709, compared with approximately ¥497,265 at 0.2011 Taiwan dollars on the morning of the 29th, a difference of approximately ¥23,556.