Yen Holds Near 160 as Bessent Plays Down Intervention Risks
đŽ U.S. Treasury Secretary Scott Bessent said yen moves are now âpretty well contained,â a shift from his July description of conditions as âdisorderly.â The remark suggests the likelihood of renewed U.S.-Japan coordinated FX intervention is currently low.
đŠ Attention is therefore shifting toward the BoJ. Bessent did not directly call for a rate hike but said he expects Governor Kazuo Ueda to âdo the right thing,â as markets continue to price in further tightening in September.
đ USD/JPY traded around 159.8â160.2 on August 31, while Japanâs 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.
â ïž 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
đŽ U.S. Treasury Secretary Scott Bessent said yen moves are now âpretty well contained,â a shift from his July description of conditions as âdisorderly.â The remark suggests the likelihood of renewed U.S.-Japan coordinated FX intervention is currently low.
đŠ Attention is therefore shifting toward the BoJ. Bessent did not directly call for a rate hike but said he expects Governor Kazuo Ueda to âdo the right thing,â as markets continue to price in further tightening in September.
đ USD/JPY traded around 159.8â160.2 on August 31, while Japanâs 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.
â ïž 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
