Yen Movement After US‑Japan Currency Intervention
The Japanese yen weakened on Tuesday while preserving the bulk of its recent rally, following a rare coordinated currency‑market intervention by Japan and the United States that took place the previous week. Over the three trading sessions after the intervention was confirmed, the yen had appreciated as much as five per cent, pushing its value to a three‑month high of 155.20 per U.S. dollar. On Tuesday the currency gave back a modest portion of that advance, trading down 0.25 per cent at 157.56 per dollar, yet it remained well above the 40‑year low of 163.99 recorded in July.
Axel Merk, chief investment officer at Merk Investments, interpreted the joint action as a signalling exercise aimed at discouraging market participants from short‑selling the yen. He remarked, “As most people would agree that interventions in the currency markets have a limited impact in the medium term. So I think it’s about signalling and posturing to tell the market, ’Hey! Don’t short the yen so much!’”
Against the euro, the yen slipped 0.33 per cent to 181.36, retreating from Monday’s near nine‑month peak of 179.435. The article was generated with AI assistance and subsequently reviewed by an editor.