Yen Rallies After Joint Intervention Efforts, Raises Hike Odds

The Japanese yen gained sharply against the US dollar on Wednesday after retracing approximately half of its previous increases following a rare joint intervention by the US and Japan at the end of July.

The yen had reached a 40-year low of 163.98 per dollar before the intervention but rose to as high as 155.21 afterwards, only to surrender some gains. It was last up 0.79% at 158.92 per dollar.

Economists point out that the size of the move is relatively limited and may not necessarily be an official intervention. BOJ Governor Kazuo Ueda on Tuesday signalled a strong chance of a hike this month, while US Treasury Secretary Scott Bessent voiced strong support for 'decisive' monetary steps to combat yen weakness in a meeting with Ueda.