Yen buying and dollar selling accelerated in the New York market over the weekend, sending the yen sharply higher into the low ¥157 range per dollar. The yen briefly moved into the ¥156 range, heightening concerns about renewed coordinated intervention by the United States and Japan.
Yen buying and dollar selling accelerated in the New York foreign exchange market on Saturday the 25th, sending the yen sharply higher into the low ¥157 range per dollar. As of 5 p.m., the yen was trading in a ¥157.22–¥157.32 range, strengthening by approximately ¥1.60 against the dollar from the same time the previous day. The yen briefly moved into the ¥156 range.
Prime Minister Takaichi Sanae (高市早苗) disclosed on the 25th that President Trump had said during the U.S.-Japan summit meeting that “the weakness of the yen is making trade difficult for the United States.” Finance Minister Katayama Satsuki (片山さつき) also explained that she had “reaffirmed that the yen’s undervaluation was an issue.” Following an online meeting, U.S. Treasury Secretary Bessent (ベセント) posted that it was important to maintain close communication regarding the foreign exchange market.
Markets focused on the possibility that the U.S. and Japanese authorities could intervene to buy yen, following their intervention at the end of July, and the yen rapidly rebounded from the upper ¥158 range late the previous day. However, expectations of additional U.S. rate hikes remained, and with U.S. Treasury yields holding at elevated levels, views also emerged that the U.S.-Japan interest-rate differential would not narrow. Some market participants said the effectiveness of intervention remained uncertain.