Yen Weakness Marks Shift in Global Currency Dynamics
The Japanese yen weakened for the first time in five sessions on Tuesday, after a rare coordinated intervention by officials in Tokyo and Washington. The currency is now about 4% stronger against both the US dollar and euro compared to levels a week ago that prompted official support, marking the first US foray into Japan's foreign exchange market in 15 years.
The yen was 0.3% softer against the US dollar at 157.715 yen, and weaker by a similar amount versus the euro at 181.45 yen. This comes after an auction of 10-year Japanese government bonds on Tuesday drew weaker demand than the previous sale of sovereign debt, prompting a fresh bout of jitters and a jump higher in yields.
The Asian trading session saw few catalysts, with stocks drifting lower. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.5%, while the Nikkei 225 slumped 0.3%. S&P 500 e-mini futures were 0.2% higher, inching closer towards reclaiming record highs.