US-Japan Currency Intervention Sparks Carry-Trade Fears

The US and Japan conducted a coordinated intervention to stabilize the yen, selling euros to buy yen and lifting its value to around 157.40 per dollar after it had approached 40-year lows.

Treasury Secretary Scott Bessent described the yen as 'very undervalued' and 'excess volatility as unhealthy', while Coin Bureau warned that a rapid yen rally risks unwinding one of the world's largest carry trades.

Investors who borrowed cheap yen to fund purchases of stocks, crypto, and other higher-yielding assets could be forced to sell, potentially triggering a broader global market selloff if the move proves disorderly rather than gradual.