USD Struggles Near Six-Week Lows Amid Intervention Fears

The US Dollar Index has struggled to hold its ground near six-week lows after suspected Japanese intervention and possible direct action by the United States weighed on sentiment.

At the time of writing, the index trades around 99.96, easing from an intraday high of 100.45 and hovering near its lowest level in six weeks.

The Greenback suffered a sharp sell-off on Thursday as the Japanese Yen surged across the board.

According to Reuters, Japanese authorities likely conducted a large-scale US Dollar-selling, Yen-buying intervention during American trading hours.

This move intensified concerns of further intervention, with the US Treasury advising banks to 'stand ready for future action.'

Analysts at Brown Brothers Harriman argue that the USD rally from May has run its course and the DXY is poised to retreat back into a 96-100 range.