Yen Surges to Six-Month High as Joint Intervention Fears Grow
The yen has surged to its strongest level in six months, reaching 153 per dollar, as investors unwind their short-yen positions. This move is being driven by expectations of joint foreign-exchange intervention by U.S. and Japanese monetary authorities, as well as a potential BOJ rate hike.
A Mitsubishi UFJ official noted that momentum is shifting, with not only hedge funds but also medium- to long-term investors unwinding their positions involving selling the yen and buying the dollar.
The yen's strength is being supported by expectations of policy changes from both countries. U.S. Treasury Secretary Scott Bessent has reiterated his support for Japan taking firm market and financial policy measures to address the yen's undervaluation, sparking speculation that joint intervention could be on the table.