Forex
USD/JPY Gains Amid Intervention Risks as Japan and US Strengthen Cooperation
The Japanese Yen has declined amid concerns of currency intervention risks after US Treasury Secretary Scott Bessent and Japan's Finance Minister Satsuki Katayama reaffirmed their commitment to strengthening cooperation to address JPY weakness.
Katayama stated that she believes an undervalued Japanese Yen is problematic, aligning with Bessent's views. They agreed to beef up cooperation and ensure close communications with the US Treasury to maintain orderly foreign exchange markets.
Hawkish signals from the US Federal Reserve policymakers provide support to the Greenback, with a 70.3% chance of a quarter-point rate hike at the October meeting, according to the CME's FedWatch tool.