Japan's Yen Intervention Fades as Market Awaits Rate Hike

A $88 billion yen intervention by Japan and the United States has already faded, and the market is daring officials to act.

The USD/JPY pair has bounced back from its drop in early August, climbing to 158.93 on Monday, its highest level this month.

Goldman Sachs notes that Japanese investors continued buying foreign bonds at a strong pace in July, suggesting limited appetite to shift capital and further weakening the yen.

The current account deficit in June was ¥92.3 billion ($580.7 million), Japan's first in 17 months, and economists had expected a surplus of roughly ¥1.51 trillion ($9.5 billion).