During the New York session, dollar-yen traded around ¥159.75, briefly reached the 160-yen range and then fell to around ¥159.35. There is currently no information indicating that intervention has taken place.
In New York trading, dollar-yen remained around ¥159.75, with the pair briefly reaching the 160-yen range during the day. It then fell rapidly to around ¥159.35.
Some observers say there is currently no official confirmation that intervention has been carried out or that a rate check has taken place. Some market participants also say the level reached when the yen broke above 160 was viewed as resistance.
The Japanese government conducted a historic coordinated intervention in late July, with the total amount deployed reportedly reaching ¥15.4 trillion. Although steps were taken to curb yen depreciation, some believe the threshold for intervention is now high.
Recently, the yen has regained its status as a safe-haven asset during periods of turmoil in equity markets, while rising interest rates in Japan have also increased the appeal of yen-denominated assets. Some observers therefore say the incentive for yen carry trades has declined.