iForex Hit by Unprecedented Yen Intervention
iForex Financial Trading Holdings Ltd reported that its trading income in July was negatively impacted by a significant US and Japan yen intervention. The company's online and mobile trading platform for multi-asset contracts for difference experienced lower-than-expected trading activity, which was partly due to the joint currency intervention on 30 and 31 July.
The Japanese Ministry of Finance and the US Treasury intervened in the yen market after it reached a historic low against the US dollar. The intervention led to a sharp appreciation of the yen, resulting in losses for iForex's clients who had net exposure to the currency. Additionally, the weakness of the yen reduced the value of trading income from Japanese clients.
iForex now expects adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) between USD500,000 and USD2.5 million for 2026. This is lower than its previous forecast of annual EBITDA of USD2.4 million.