Yen Soars as Japan and US Coordination on Interest Rates Raises Questions

The Japanese yen made its biggest jump against the dollar since joint US-Japanese intervention last month. This move was largely attributed to strong hints from Japanese policymakers this week that interest rates will rise later this month, which received an endorsement from U.S. Treasury Secretary Scott Bessent. The yen's rise of around 1% was its strongest since the intervention a month ago.

Analysts suggest that central bank activity may have been behind the move, but it is likely a 'rate check' rather than direct yen buying. This has opened up a wider debate about the growing US influence over Japanese policy, with some questioning whether Japanese policy is being set in Tokyo or Washington.