Fading Yen Intervention Sparks Talk of Further Action

The yen's intervention impact is rapidly fading, causing traders to speculate about further action from Japan. The currency has lost nearly half of its gains since the joint operation between Japan and the US in May.

On Friday afternoon, the yen traded at around 158.40 against the dollar, well below the strong point of 155.23 reached on Monday. It had been near a four-decade low around 164 per dollar last week before the first joint yen-buying operation from Japan and the US since 1998.

The US Treasury Secretary, Scott Bessent, was involved in the operation along with Japan's Prime Minister, Sanae Takaichi. The joint effort aimed to stabilize the yen's value and prevent further declines.