All articles tagged with #currency intervention
The New York Fed’s rate check aimed at stabilizing the yen signals closer U.S.-Japan coordination but a direct, joint intervention remains unlikely for now due to U.S. domestic considerations and the potential costs of Japan selling Treasuries; even as intervention thresholds ease, the BOJ’s cautious stance and political hurdles keep a lasting yen-rescue option uncertain, leaving markets watching for further signals.
The U.S. Treasury signaled a possible intervention in the currency market after the New York Fed asked banks about the cost of exchanging yen for dollars, a move that sent the yen up about 1.6% and underscored concerns that Japanese market turbulence could lift U.S. borrowing costs; while no intervention occurred, the step signals a rare Treasury tool under Scott Bessent as Tokyo's fiscal and BoJ policy frame the risk.
Argentina's government sold over $450 million to support the peso, which has been declining for three days, despite US aid and capital restrictions, highlighting ongoing economic strain and limited maneuvering space for the authorities.
Investors are rapidly withdrawing from Argentina, prompting the government to spend over $1 billion in three days to support the peso amid fears of devaluation, political setbacks, and declining confidence in President Milei's economic reforms, which have led to a sharp fall in assets and increased market instability.
Japan spent a record ¥9.8 trillion ($62.2 billion) in the past month to support the yen, which had fallen to a 34-year low against the dollar, highlighting the government's determination to counter speculators and the significant effort required to influence the currency market.
Japan's Ministry of Finance confirmed its first currency intervention since 2022, spending 9.7885 trillion yen ($62.25 billion) between April 26 and May 29 to stabilize the yen after it plunged to a 34-year-low. This intervention coincided with a sharp rebound in the yen, which had been under pressure since the Bank of Japan ended its negative interest rate policy in March.
Japan's $62 billion intervention to support the yen has provided little relief, highlighting the challenges in stabilizing the currency despite significant financial efforts.
The dollar surged to a 34-year high against the yen following stronger-than-expected US inflation data, prompting speculation about potential intervention by Japanese authorities. Japan's vice-finance minister for international affairs stated that they would not rule out measures to address excessive exchange rate moves, but stopped short of declaring the latest move "excessive." With market expectations for US interest rate cuts pushed out, the large rate differential between the US and Japan is expected to continue putting downward pressure on the yen. Analysts are closely watching for signs of possible official currency intervention by Japan's ministry of finance.
Chinese shares surged in response to positive economic data, while Japanese stocks fell as the yen hovered near levels that could prompt currency intervention. U.S. stock futures indicated a higher open, supported by easing inflation pressures and expectations of a June interest rate cut. Gold reached a new record high, and crude oil remained firm amid improved Chinese economy and anticipated OPEC+ output cuts. The dollar held steady against the yen, prompting concerns of intervention, while the euro and sterling remained stable.
Chinese shares surged on positive economic data, while Japanese stocks fell amid concerns about currency intervention as the yen remained near a key level. U.S. stock futures pointed higher on expectations of a June interest rate cut following easing inflation pressures. Gold hit a record high, and oil prices rose amid a tighter supply-demand picture. The dollar was steady against the yen, and global markets showed optimism despite some concerns about intervention and profit-taking.
The Japanese yen's recent slide to a 34-year low against the dollar has prompted speculation about potential intervention by Japan's monetary authorities, but currency traders remain unconvinced of the need for such action. While Japanese stocks are thriving, Chinese stocks experienced a significant decline, raising concerns in Beijing. Key economic data releases and the Bank of Japan's summary of opinions from its recent policy meeting are expected to provide further direction to markets.
The Japanese Yen fell to its lowest level against the US Dollar since 1990, prompting Japan to issue its strongest warning yet and consider currency intervention, as the yen slid to 151.97 per dollar in Tokyo, nearing the 151.95 level that triggered intervention in October 2022. Finance Minister Shunichi Suzuki hinted at possible action, causing traders to back away.
Asian stock markets stalled as investors awaited U.S. inflation data, with concerns that higher-than-expected figures could impact interest rate outlook. Japan's warning on yen weakness and China's central bank setting a firmer fix for the yuan also influenced market sentiment. Expectations for global interest rate cuts have boosted equities, with U.S. and European inflation data and central bank meetings in focus this week. The dollar was slightly lower against the yen, while gold edged higher and oil prices were supported by geopolitical tensions.
Swiss National Bank (SNB) chairman Thomas Jordan stated that the rate cut is not a parting gift and emphasized the independence of their decisions from other central banks. The SNB does not provide forward guidance on future interest rates and will reassess the situation in three months. Despite the franc's recent weakening, the SNB may intervene to stabilize the currency if necessary, as they did last year to control imported inflation.
The USD/JPY pair surged past the 150.00 mark, reaching its highest level in nearly three months, driven by soaring U.S. Treasury yields following higher-than-expected U.S. inflation data. The article discusses key technical thresholds to watch, highlighting the potential for Japanese government intervention to support the yen, which could reverse the pair's recent advance. Without intervention, further bullish momentum could target last year's high around the 152.00 handle.