|

Japanese Yen: Intervention risk rises with 40-year low against USD – BNY

BNY’s Geoff Yu highlights rising Japanese Yen intervention risk after Finance Minister Satsuki Katayama’s call with U.S. Treasury Secretary Scott Bessent. Japan and the U.S. reaffirmed a shared stance that bold FX action remains possible, even as Katayama avoided commenting on current levels. The report notes heightened market focus on USD/JPY as it trades near a 40-year high, alongside broader discussions on global markets and Iran.

Katayama call keeps FX option open

"Japan’s Finance Minister Satsuki Katayama said she held a phone call lasting nearly an hour with U.S. Treasury Secretary Scott Bessent on Monday, following last week’s G7 meeting in France."

"She said Japan and the U.S. still share a “solid understanding” that bold action can be taken if necessary on foreign exchange, signaling that the bilateral stance on intervention remains unchanged."

"Katayama said cooperation and alignment between the two sides have strengthened, but declined to comment on current FX levels."

"The remarks heightened market attention regarding possible Japanese intervention as the yen hovered near a 40-year low."

"The discussion also covered global financial markets and recent developments in Iran and the Strait of Hormuz."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

(This story was corrected on June 23 at 13:04 GMT to note in the first paragraph that the USD/JPY trades near a 40-year high, not low).

Author

FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

More from FXStreet Insights Team
Share:

Editor's Picks

AUD/USD flirts with 0.7000, lowest since early August amid bullish USD

AUD/USD hits a fresh low since early August during the Asian session on Friday and looks vulnerable near 0.7000 after breaking below the 200-day SMA overnight. Against the backdrop of the hawkish Fed, a two-day rally in oil prices revives inflation fears and continues to push US bond yields to multi-year highs. Adding to this, geopolitical risks lift the US Dollar to a two-month high, overshadowing RBA rate hike bets and weighing on the pair.

USD/JPY pulls back from three-week high after failing near 159.00

USD/JPY edges lower during the Asian session on Friday, stalling its recent strong move to a three-week high of 159.00 as Japanese Yen bears turn cautious amid intervention fears. Meanwhile, the US Dollar retains a strong bullish undertone as the Fed's hawkish outlook and oil-driven inflation fears continue to push US bond yields to multi-year peaks. Furthermore, the BoJ's dovish rate hike last week might cap JPY and support spot prices.

Gold treads water below $4,300

Gold grabs some buying attention and advances marginally at the end of the week, partially retracing the weekly decline, although it is still navigating below the key $4,300 mark per troy ounce. The fresh selling bias on the Greenback and the modest decline in US Treasury yields appear to support the humble advance in the precious metal.

Crypto Today: Bitcoin and Ethereum edge lower, XRP extends recovery as macro headwinds weigh

The broader cryptocurrency market is consolidating on Friday, with Bitcoin paring losses slightly above $84,000. Ethereum declines in tandem with BTC. Ripple (XRP), meanwhile, paints a different picture.



Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which
The Federal Reserve (Fed) and the Bank of Japan (BoJ) have just done something remarkably similar. Both central banks raised interest rates by 25 basis points (bps) last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.
Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.