JPY 03 (Dec 16 - Dec 26)

[behappyalways]

US Treasury Informed Banks It May Intervene In Japan's Yen, As Market Laughs At BOJ's Own Attempts To Prop Up Currency
https://www.zerohedge.com/markets/us-tr ... empts-prop

[behappyalways]

The United States sold euros to buy yen without telling the ECB until after the trade was done. Senior ECB officials called it “an unprecedented breach of longstanding conventions.” One said: “This has never happened before.”
https://x.com/matrbk/status/2085538543628325039

[behappyalways]

Bessent's 'Yentervention' Does Not Fix Japan's Underlying Structural Issues
https://www.zerohedge.com/markets/besse ... ral-issues

[behappyalways]

Japan Sold Almost $90 Billion In Treasuries To Fund Record Yen Intervention
https://www.zerohedge.com/markets/japan ... tervention

[behappyalways]

"I Am The House Now": Bessent Goes Full Judge Dredd On Yen Bears
https://www.zerohedge.com/markets/i-am- ... -yen-bears

[winston]

Japan says Trump voiced concern over weak yen, in summit with PM Takaichi

Katayama's unusually frank account of leaders' talks, which governments typically keep confidential, points to shared concern in Tokyo and Washington over the yen's continued slide despite their joint intervention in July.

Katayama said the leaders' discussion on foreign exchange reaffirmed the shared US-Japan stance behind their July 31 coordinated intervention, including a commitment to counter excessive volatility and disorderly moves in the yen.

The dollar has been rallying against the yen and other major currencies, driven by strong US economic data, a hawkish Federal Reserve and surging US bond yields.

The benchmark 10-year Japanese government bond yield jumped to a 30-year high of 3.115 percent on Friday following a steep selloff in the US market.

Source: Reuters

https://www.thestandard.com.hk/finance/article/343853/

[winston]

Yen rises as Japanese officials say weak currency is problem

The currency strengthens as much as 1.2%, the most since Sep 7, to 156.94 per dollar on Friday

The yen has recently come under renewed pressure as expectations for further Federal Reserve rate increases threaten to keep the US-Japan interest-rate gap wide.

“Intervention risk should put a ceiling on further yen weakness,” said Moh Siong Sim, a strategist at Oversea-Chinese Banking. “More importantly, the yen may be nearing a turning point as Trump’s concerns over its weakness point to deeper US-Japan coordination to support the currency.”

The yen has recently come under renewed pressure as expectations for further Federal Reserve rate increases threaten to keep the US-Japan interest-rate gap wide.

Market participants have viewed the area around 160 as where intervention risk rises.

The yen had firmed to its strongest level in seven months in early September, but has since surrendered some of those gains.

Options sentiment toward the yen turned more bullish lately, reflecting increased hedging demand against the risk of Japanese intervention.

Leveraged traders trimmed back their bullish positions on the yen in the week ending Sep 22, according to Commodity Futures Trading Commission data released Friday. They turned positive on the currency for the first time since mid-2025 a week earlier.

Japan spent a record 15.4 trillion yen (US$97.4 billion) intervening in the month through Aug 26, according to Finance Ministry data.

“Japanese officials’ latest comments do nothing to address the two major elephants in the room: The Bank of Japan lags its peers considerably, and there is still structural appetite for carry. The yen’s strength looks purely reactionary and feeble.”

Source: BLOOMBERG

https://www.businesstimes.com.sg/compan ... cy-problem