USD/JPY Pair Closes Flat as Yen Weakens Without Intervention
The USD/JPY currency pair closed flat at 157.41 after initially reversing its losses, while the Japanese Yen weakened in the absence of any intervention from the Ministry of Finance. According to data released by the Ministry, no foreign exchange (FX) intervention was conducted between August 27 and September 28, following a record coordinated US-Japan operation worth $98.7 billion in July. Elevated US yields and firm Dollar conditions continue to weigh on the Japanese Yen.
The lack of support for the yen has put pressure on the currency, with it ceding ground against the USD/JPY pair. In related news, South Korea's yield curve shifted lower across the board after the government renewed its emergency buyback warning. The 2-year yield fell by 3.3 basis points to 3.977%, the 10-year yield dropped by 5.4 basis points to 4.402%, and the 30-year yield decreased by 7.5 basis points to 4.509%.