Yen hits three-month high after Trump helps prop up currency
📰 source: theguardian_business · 💼 business
the yen hit its highest level in three months on monday, strengthening to ¥155 per dollar, after japan and the us confirmed a rare coordinated yen-buying intervention late last week. the move came after the yen had slumped to a 40-year low of almost ¥164 last week.
tokyo's finance ministry said the two governments had carried out the joint intervention and would not hesitate to take further action. donald trump said "we're always there for japan," while treasury secretary scott bessent told reporters washington "will not hesitate" to join again. a photograph of bessent's notebook showed a to-do list that included buying $5bn-$10bn of yen. the intervention was the first us-japan collaboration of its kind since march 2011.
analysts warned the support might not reverse the yen's weakness. lee hardman at mufg said the threat of further joint action and faster bank of japan hikes should discourage short yen positions. oxford economics argued the boj would likely wait until december before raising rates, given the intervention reduces the risk of a sharp depreciation and gives policymakers time to assess the middle east conflict and past hikes.
why it matters: first coordinated us-japan intervention in over a decade signals official support for the yen, with ripple effects for carry trades and boj policy traps.
source: theguardian_business
sentiment: +0.30 · impact: 0.70