G7's Absence from Japan-US Yen Intervention Sparks Exchange Rate Concerns

Last week's joint US-Japan intervention to support the yen was a one-off bilateral deal, lacking the full force of the G7. The operation has weakened hopes for a 'grand bargain' on exchange rates.

While the yen retained its initial bounce amid speculation over potential repeat interventions, currency markets are left with more questions than answers. Will the salvo be reinforced by more forceful Bank of Japan interest-rate rises?

The intervention aimed to quell excessive weakness and speculation in a yen at 40-year lows, but analysts wonder why the whole G7 wasn't involved to add heft.