Forex
JPY Intervention Fails to Stem Dollar Strength
Recent joint intervention by the US and Japan in the Japanese Yen (JPY) market has had a limited impact, according to MUFG's Michael Wan. The Dollar Index (DXY) recovered through the trading session, but this was largely driven by JPY underperformance.
The USD/JPY exchange rate approached 159 levels, while EUR/JPY rose toward 185.71, despite the intervention effort on July 30th.
Wan notes that US longer-end yields have returned to pre-buyback levels, with the 10-year at 4.7% and 30-year at 5.24%, weighing heavily on risk assets.