Analyst: U.S.-Japan intervention has receded in significant amounts of Japanese yen

On 3 August, the United States dollar fell by about 0.3 per cent to the Japanese yen, falling at one point in the day to a high point since May near 155.2 and sensitizing the market to a new round of interventions. On Monday, the Ministry of Finance of Japan indicated that Japan and the United States had coordinated the Yen buyout intervention and would not hesitate to take further action, which confirmed the rare bilateral intervention to stop the Yen from falling to its 40-year low. The United States Treasurer, Becent, also indicated that the United States would consider, in the coming months, expanding the Federal Reserve's buy-back tool to provide temporary United States dollar liquidity, calling it a “critical safety valve”. Matt Simpson, Senior Market Analyst of StoneX, said: “Becent's speech may be more significant than the intervention itself. This seems to indicate that the yen has reached its end this year. The term `joint intervention' has important weight in the current market and is rarely used.”