Yen Intervention Effect Fades as Yen Weakens Again Against Dollar
The coordinated yen-buying intervention by Japan and the US last week has lost its effect, and the yen's weakening trend is strengthening again in the foreign exchange market. On August 11, just over a week after the intervention on August 3, the yen closed at 159.25-35 against the dollar in the New York market, which is similar to the previous day's level.
Although the yen remains stronger than it was before the intervention, its effect is rapidly fading, and voices in the market are warning of a repeat of 'the market's victory.'
The dollar-yen pair has consolidated in the lower 159 range due to a wait-and-see mood ahead of the release of the US July Consumer Price Index (CPI) on August 12.
The yen's underlying tone is weakening, and its value against the dollar has dropped from the 157 range to the 159 range. This move diverged significantly from the levels seen during the intervention, underscoring the waning effect of the action.