This recent intervention into the yen is a reminder of the folly of thinking that anything other than market demand can dictate what a currency’s value should be. … READ MORE >
Japanese yen
Market Minute: Why did Japan and the U.S. prop up the yen?
Japan wanted to prevent a disorderly depreciation of the yen. The U.S. wanted to suppress the increase in Treasury yields and avoid a selloff by Japan. But it won’t last. … READ MORE >
Market Minute: Yen heading toward 170 on the dollar
Rational overshooting in the forex market will most likely send the yen to 170 or above versus the dollar as investors test the mettle of the new Takaichi government. … READ MORE >
Market Minute: The bill for Japan’s lost decades is coming due
For decades, Japan used low interest rates and piled up debt to prop up its aging economy. Now, the currency market is saying enough is enough. … READ MORE >
Market Minute: Recent losses signal further dollar weakness
The dollar’s fall below its most recent trading range and below its five-year moving average suggests the potential for continued weakness. … READ MORE >
U.S.-Japan yen intervention is imminent
Rate checks by the Bank of Japan and the Fed last week suggest that a broader intervention to prop up the yen and longer-term Treasury yields is imminent. … READ MORE >
Market Minute: Bank of Japan rate normalization demands investor attention
Expected Fed rate cuts and increases by the Bank of Japan will affect the carry trade as investors reassess the use of the yen to finance speculative activity elsewhere. … READ MORE >
Market Minute: Currency politics, capital flows and U.S.-Japanese relations
U.S. Treasury Secretary Scott Bessent and Japanese Finance Minister Katsunobu Kato are set to start a dialogue on currency rates when they meet this week in Washington. Their meeting should capture in vivid fashion the lack of clarity in U.S. trade policy at a time when Japanese decision makers are … … READ MORE >
Market minute: Rates in Europe and Japan signaling a stronger euro and yen
The dollar’s recent five-month appreciation versus the euro appears to have topped out, reversing the dollar’s move toward parity. … READ MORE >
Japan intervenes in the currency market
With the yen in freefall, Japan on Thursday took the unusual step of intervening in currency markets to prop up its value. … READ MORE >