The yen surged in the New York market, temporarily reaching the low ¥158s per dollar. Attention is focused on market developments following the coordinated intervention by Japan and the United States, as well as the outlook for measures by the Japanese government and the Bank of Japan to address the yen’s weakness.
In the New York foreign exchange market, the yen surged, temporarily reaching the low ¥158s per dollar. Despite the developments to date, the yen’s strength has not quickly subsided, and market participants are watching for what happens next.
Market participants said it was difficult to conclude that the yen’s strength this time was caused by intervention, but concern about additional intervention is growing. Japan and the United States carried out coordinated intervention at the end of July, but the yen has since gone through another period of decline.
Treasury Secretary Bessent reportedly held talks with Bank of Japan Governor Ueda (植田) and conveyed support for the Japanese government taking measures that would lead to a weaker yen. The latest developments involving the Japanese and US financial authorities have again underscored the importance of maintaining an orderly yen market.
Looking ahead, the possible need for additional intervention and the Bank of Japan’s policy response have become matters of interest for market participants, and the situation is expected to remain one of awaiting announcements from the government and the Bank of Japan.