USD Struggles to Recover from Sell-off Amid Suspected Japanese Intervention

The US Dollar (USD) has struggled to regain momentum after Thursday's sharp sell-off, driven by suspected intervention by Japanese authorities to curb excessive weakness in the Yen.

According to Reuters, the US Treasury informed several banks that it may intervene in the Yen market and advised them to 'stand ready for future action.'

The Greenback initially attempted to recover from six-week lows but lost strength after this news broke.

The USD/CHF pair trimmed part of its earlier gains on Friday, trading around 0.8086 after reaching an intraday high of 0.8128.

Strategists at Brown Brothers Harriman argue that 'the USD rally from May has run its course' and predict the DXY will retreat into a 96.00-100.00 range.