Yen Stabilizes Amid US Intervention, Dollar Slides on Iran Hopes
The Japanese yen has steadied after a historic intervention by Japan and the US. The dollar is trading near six-week lows against other currencies due to revived hopes of an end to the war in Iran, which have blunted safe-haven demand.
US Treasury Secretary Scott Bessent said the US would do 'whatever it takes' to support Japan's efforts to stabilize the yen. This echoes former European Central Bank President Mario Draghi's 2012 pledge to preserve the euro during the regional debt crisis.
Marc Chandler, chief market strategist at Bannockburn Capital Markets, commented that central banks are not defending a fixed level but the market is still challenging their resolve. He expects fundamental justification for intervention in the next few days when the US jobs data is released on Friday.