DXY Stabilizes at Seven-Week Low Amid Yen Intervention

The US Dollar Index (DXY) has held at its seven-week low after a sharp decline triggered by intervention on the yen and foreign selling of long-term, dollar-denominated fixed-income assets last week.

The recent plunge for the yen and Japanese Government Bonds (JGBs) led to an estimated $88 billion in JPY being bought by the US Treasury and its Japanese counterpart, with a portion of dollar selling featured in the intervention.

Fed Chairman Warsh's presser added pressure on the dollar as he signaled some reluctance to confirm that a rate hike would be his preferred reaction to higher inflation, leading foreign markets to trim holdings of dollar-denominated assets.