Euro Holds Steady Against Yen Amid Uncertainty Over Future Intervention Plans
The Euro has maintained its two-day gains against the Japanese Yen, trading around 182.25 in the European session on Thursday.
Investors are seeking clarity on whether the US-Japan will intervene again to prop up the Yen, as market experts believe that domestic improvements are needed to sustain the currency's recent strength.
Last week, Japan's Ministry of Finance confirmed a joint intervention with the US to counter excessive volatility in the Japanese yen, and Japan's Finance Minister Satsuki Katayama stated that they 'won't hesitate to carry out more forex intervention with the US'. However, market experts are skeptical about the longevity of this strength without further support.
Commerzbank notes that the USD/JPY has already surrendered part of its gains since last week's historic intervention and sees good reasons to doubt a sustained appreciation of the Yen. The bank highlights comments from Treasury Secretary Scott Bessent, who suggested that the US would be willing to act again if necessary.