Yen Retreats as Markets Watch Japan-US Coordination
The Japanese yen weakened against major currencies on Tuesday, reversing its recent gains and posting its first daily loss in five sessions. The pullback follows a three-month high against the US dollar, which was reached after coordinated intervention from Japan and the United States to support the currency.
Since last Thursday, the yen has gained around 5% against the US dollar, driven by the joint effort of Japanese and US authorities in the foreign exchange market. The Bank of Japan spent an estimated ¥6 trillion to ¥8.5 trillion (approximately $36.5 billion to $59 billion) on a unilateral intervention on Thursday, while the US Treasury officially joined the operation on Friday.
Market analysts believe that the coordinated action between Tokyo and Washington reflects an unprecedented level of cooperation in supporting foreign exchange market stability. However, concerns over additional intervention may limit downward pressure on the yen in the near term.