Yen Intervention Eases Franc Carry Trade Fears

The recent joint intervention by the New York Federal Reserve (Fed) and Japanese authorities to support the yen has led some analysts to believe that the franc faces no threat from a massive shift towards carry trades.

US Treasury Secretary Scott Bessent's actions aim to avoid a spike in US Treasury bond interest rates, which had become a concern following the yen's decline. The operation saw yen purchases amounting to approximately 53 billion US dollars over three days.