Japan’s Suzuki: Government cannot confiscate reserves foreign central banks park with BOJ

Dhwani Mehta FXStreet

Japanese Finance Minister Shunichi Suzuki said on Monday, “under the current law, government cannot confiscate the Russian reserves foreign central banks park with the Bank of Japan (BOJ).

His comments come after the BOJ intervened for the second time this year to defend its implicit yield cap by offering to buy unlimited amounts of 10-year Japanese government bonds (JGBs) at 0.25%.

The 10-year JGB yield advanced further to a six-year high of 0.245% in early Asia, closing on the central bank’s tolerance level.

Market reaction

USD/JPY is trading around 123.00, rallying hard on the BOJ’s intervention, up 0.75% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD softens as Fed rate uncertainty supports US Dollar

GBP/USD edges lower after opening at a bullish gap, remaining within positive territory and trading around 1.3290 during the Asian hours on Tuesday. The currency pair is under pressure as the US Dollar (USD) stabilizes, driven by market caution ahead of the upcoming Federal Reserve policy decision due on Wednesday.

EUR/USD hangs near monthly low, holds above 1.1350 as USD bulls pause ahead of FOMC meeting

The EUR/USD pair is seen consolidating near the monthly trough and trading just above mid-1.1300s during the Asian session on Tuesday. Traders seem hesitant and await the outcome of a two-day FOMC policy meeting before placing aggressive directional bets.

Gold looks vulnerable as focus shifts to the Fed meeting

Gold is challenging the $4,050 level early Tuesday, extending the pullback from above $4,100, as sellers remain in control ahead of the two-day US Federal Reserve monetary policy meeting, starting later in the day. Gold is in the red for the second consecutive day so far this Tuesday, undermined by the recent demand for the US Dollar.

Senate prepares for potential CLARITY Act floor vote as Republicans work to secure support

Senate Republicans are preparing to advance the CLARITY Act as lawmakers face a narrow window to begin floor proceedings before the August recess. Senate Majority Leader John Thune is expected to move toward filing cloture on the motion to proceed to the bill, according to a Monday report by Eleanor Terrett.

Asian stocks including KOSPI slide as AI doubts hit chipmakers

Asian stocks fall sharply on Tuesday as mounting skepticism over the massive financial returns on artificial intelligence spending triggered a widespread sell-off across global semiconductor shares. The tech-driven downturn rippled from Wall Street into Asian markets, while investors shifted toward safety, driving bond prices higher and sending oil lower.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.