Yen Holds Near 160 as Bessent Plays Down Intervention Risks
💴 U.S. Treasury Secretary Scott Bessent said yen moves are now “pretty well contained,” a shift from his July description of conditions as “disorderly.” The remark suggests the likelihood of renewed U.S.-Japan coordinated FX intervention is currently low.
🏦 Attention is therefore shifting toward the BoJ. Bessent did not directly call for a rate hike but said he expects Governor Kazuo Ueda to “do the right thing,” as markets continue to price in further tightening in September.
📊 USD/JPY traded around 159.8–160.2 on August 31, while Japan’s 10-year JGB yield remained near 2.95%. Japan spent about 15.4 trillion yen on intervention from late July through late August, yet the exchange rate has returned to the 160 area.
⚠️ This suggests 160 is now more of a monitoring zone than an automatic intervention trigger. Pressure on the yen could persist as long as the U.S.-Japan interest-rate gap remains wide.
#Forex
$JPYC
💴 U.S. Treasury Secretary Scott Bessent said yen moves are now “pretty well contained,” a shift from his July description of conditions as “disorderly.” The remark suggests the likelihood of renewed U.S.-Japan coordinated FX intervention is currently low.
🏦 Attention is therefore shifting toward the BoJ. Bessent did not directly call for a rate hike but said he expects Governor Kazuo Ueda to “do the right thing,” as markets continue to price in further tightening in September.
📊 USD/JPY traded around 159.8–160.2 on August 31, while Japan’s 10-year JGB yield remained near 2.95%. Japan spent about 15.4 trillion yen on intervention from late July through late August, yet the exchange rate has returned to the 160 area.
⚠️ This suggests 160 is now more of a monitoring zone than an automatic intervention trigger. Pressure on the yen could persist as long as the U.S.-Japan interest-rate gap remains wide.
#Forex
$JPYC
