Yen Falters After Intervention Gains Wiped
The Japanese yen weakened on Friday, retracing some of its gains from the joint currency intervention by Tokyo and Washington. The exchange rate fell past 158 per dollar, sparking speculation that authorities may need to step in again to support the currency.
This retreat highlights doubts over the effectiveness of intervention in reversing the yen's longer-term weakness. Interest rate differentials, growing fiscal concerns, high energy costs, and import costs continue to drive its decline.
The yen also faced additional pressure from a stronger dollar and rebounding oil prices following renewed tensions in the Strait of Hormuz.
Japan's household spending fell 3.3% in June, defying expectations for a 1% increase. This data underscores continued softness in consumer demand.