Bloomberg on Nostr: Yen Escapes Intervention Zone Helped by Decline in US Yields ========== The yen is ...
Yen Escapes Intervention Zone Helped by Decline in US Yields
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The yen is strengthening away from areas that prompted suspected intervention in recent weeks, and it’s starting to look similar to 2022 when weaker US economic data did the job for Japanese officials. Signs of easing US inflation pressures boosted bets the Federal Reserve will ease monetary policy this year. That caused the dollar to weaken broadly against peers, and the yen was one of the biggest-gaining major currencies. The yen has swung sharply in recent weeks, weakening beyond 160 per dollar for the first time since 1990 in late April before two rounds of suspected intervention by authorities spurred temporary gains. The currency’s rebound suggests that even as Japanese officials warn of intervention and central bank officials signal possible further interest rate increases this year, in the end US data and policy are its primary driver. The yen has gained 0.6% to 153.99 per dollar as of 1:12 p.m. in Tokyo. That means it’s about 2% stronger than the 157.52 level it reached on May 1 before the yen strengthened dramatically. The surge raised speculation that Japan may have intervened to prop up the currency.
#Yen #Intervention #UsYields #Inflation #FederalReserve #Currency
https://www.bloomberg.com/news/articles/2024-05-16/yen-escapes-intervention-zone-helped-by-decline-in-us-yields
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The yen is strengthening away from areas that prompted suspected intervention in recent weeks, and it’s starting to look similar to 2022 when weaker US economic data did the job for Japanese officials. Signs of easing US inflation pressures boosted bets the Federal Reserve will ease monetary policy this year. That caused the dollar to weaken broadly against peers, and the yen was one of the biggest-gaining major currencies. The yen has swung sharply in recent weeks, weakening beyond 160 per dollar for the first time since 1990 in late April before two rounds of suspected intervention by authorities spurred temporary gains. The currency’s rebound suggests that even as Japanese officials warn of intervention and central bank officials signal possible further interest rate increases this year, in the end US data and policy are its primary driver. The yen has gained 0.6% to 153.99 per dollar as of 1:12 p.m. in Tokyo. That means it’s about 2% stronger than the 157.52 level it reached on May 1 before the yen strengthened dramatically. The surge raised speculation that Japan may have intervened to prop up the currency.
#Yen #Intervention #UsYields #Inflation #FederalReserve #Currency
https://www.bloomberg.com/news/articles/2024-05-16/yen-escapes-intervention-zone-helped-by-decline-in-us-yields