G20 Looms Large for Yen as Intervention Fears Resurface

Japan's finance minister and central bank chief are heading to the G20 meeting in Asheville, North Carolina, which is set to focus on geopolitics and trade tensions. However, the weak yen remains a concern for currency traders.

The yen had rebounded after last month's coordinated intervention between Japan and the US, with USD/JPY falling from near 164 to 155.20. But the pair has since drifted back towards 160, reaching 159.60 on Friday.

Finance Minister Satsuki Katayama said that the joint statement on intervention 'still lives', indicating she expects to discuss the matter with US Treasury Secretary Scott Bessent on the sidelines of the G20 meeting.

The market is pricing an 80-90% chance of a Bank of Japan interest rate hike at its September meeting, which could narrow the gap between US and Japanese rates and make 'carry trades' less appealing.