US and Japan Unite Against Yen Weakness
The yen has edged higher in thin trading as markets remain on high alert for more joint intervention by Japan and the US. This comes after coordinated operations in Tokyo and New York last week triggered a dramatic rebound in the currency.
The yen rose about 0.2 per cent to 157.16 against the dollar in early Sydney trading, tracking moves with major peers amid a weaker greenback following US President Donald Trump's decision not to launch fresh strikes against Iran.
Japan's Finance Ministry and the US Treasury Department are working together to shore up the currency, a partnership that has been reinforced by Finance Minister Satsuki Katayama. The two governments have used direct purchases in the market, calls to banks, and jawboning from officials to support the yen.
Goldman Sachs strategists believe authorities would intervene further if the yen begins to unwind recent gains, which could happen in coming days. They argue that intervention is an effective tool for buying time before fundamental factors improve.