The yen recorded its biggest one-day gain in more than two weeks after Japan's finance minister Katayama Satsuki made traders wary of the risk of intervention. On Friday, the yen rose 0.6% to 157.95 yen per dollar, the best performance among G10 currencies. Katayama Satsuki said that during a meeting with Japanese Prime Minister Sanae Takaichi in New York earlier this week, US President Trump expressed concern about the weakening of the yen, thus bringing some relief to market sentiment at a time when the US dollar recently strengthened again and pushed the yen towards the key psychological threshold of 160. The Treasury Secretary also said that she will continue to coordinate with US Treasury Secretary Bezent. This statement may have made traders more cautious when betting on the short side of the yen, thereby reinforcing the threat that the authorities may intervene again if the yen continues to weaken. “The risk of intervention should set an upper limit on the further weakening of the yen,” said Moh Siong Sim, strategist at OCBC Bank. “More importantly, the yen may be nearing a turning point, as Trump's concerns about the weakening yen indicate that the US and Japan will strengthen coordination to support the yen.”
Zhitongcaijing · 1d ago
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The yen recorded its biggest one-day gain in more than two weeks after Japan's finance minister Katayama Satsuki made traders wary of the risk of intervention. On Friday, the yen rose 0.6% to 157.95 yen per dollar, the best performance among G10 currencies. Katayama Satsuki said that during a meeting with Japanese Prime Minister Sanae Takaichi in New York earlier this week, US President Trump expressed concern about the weakening of the yen, thus bringing some relief to market sentiment at a time when the US dollar recently strengthened again and pushed the yen towards the key psychological threshold of 160. The Treasury Secretary also said that she will continue to coordinate with US Treasury Secretary Bezent. This statement may have made traders more cautious when betting on the short side of the yen, thereby reinforcing the threat that the authorities may intervene again if the yen continues to weaken. “The risk of intervention should set an upper limit on the further weakening of the yen,” said Moh Siong Sim, strategist at OCBC Bank. “More importantly, the yen may be nearing a turning point, as Trump's concerns about the weakening yen indicate that the US and Japan will strengthen coordination to support the yen.”
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