Yen Strength Endures as US-Japan Intervention Continues
The Japanese yen has maintained its strength against the US dollar, holding onto most of its gains from the previous three sessions. This stability can be attributed to signals of coordinated support from both the US and Japan, which have kept markets on high alert for further intervention.
US Treasury Secretary Scott Bessent urged the Federal Reserve to expand its Foreign and International Monetary Authorities Repo Facility, allowing foreign governments to obtain US dollars using their Treasury holdings as collateral. This move comes after confirmation that the US had jointly intervened with Japan to support the yen.
The Bank of Japan's recent data shows Tokyo spent around ¥5.33 trillion during Friday's operations, following a record single-day intervention worth ¥8.45 trillion a day earlier.
The yen had fallen to four-decade lows last month due to rising energy costs, growing fiscal concerns, and persistently wide interest rate differentials.