As Japan and the US made a series of verbal interventions, dollar-yen rebounded from below ¥153 to around ¥159. The focus is on whether the yen depreciation trend has genuinely reversed.
Dollar-yen fell below ¥153 on 8 September, but then reversed course and rose to around ¥159.00 on 24 September.
The market is alert to the possibility of renewed yen depreciation, partly in response to calls from the US for the Bank of Japan to accelerate the pace of rate hikes.
On 25 September, Japanese and US authorities made a series of verbal interventions to restrain yen depreciation, strengthening their stance against further yen weakness.
However, when a Japan-US summit meeting was held on the 23rd of the same month, no specific discussion of yen depreciation or verbal intervention was disclosed, leaving views divided on the yen's direction after the 24th.