US-Japan Intervention May 'Weaponize' Yen, Upend Global Currency Markets

The recent U.S.-Japan intervention to support the yen has sent shockwaves through global currency markets. This unprecedented move was bigger than usual, and its execution was notable for being backed by Washington. According to Jesper Koll, expert director for Monex Group, 'Japan's Ministry of Finance and the U.S. Treasury have successfully weaponized the yen.'

The intervention went beyond conventional foreign exchange methods, with some investors viewing it as a major step in shaping market behavior. This is not the first time Japan has intervened in currency markets, but the scale and backing from Washington make this episode stand out.