Japanese Yen Soars as Joint Intervention with US Gains Momentum
The Japanese Yen (JPY) has outperformed its peers on Monday, down 0.3% to near 159.65 against the US Dollar (USD). The USD/JPY pair declined as investors turned their focus to a potential joint intervention between the United States and Japan.
According to Scotiabank analysts, the recent defensive price action is notable and worrisome for policymakers at the Bank of Japan (BoJ) and officials at the Ministry of Finance (MoF). This comes as media reports highlight a $96.4bn intervention effort to support the yen from July 30 to August 26.
US Treasury Secretary Scott Bessent stated that Washington would intervene with Japan to shore up the Asia-Pacific currency, if needed. The comments came after the US and Japan jointly intervened in late July, as USD/JPY jumped to a multi-decade high near 164.00.