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Yen rallies to three-month peak as investors await more FX intervention
Japan said it and the U.S. coordinated yen-buying last week, and it warned it would act again, with estimates of up to $100 billion spent on interventions this year.
The yen strengthened against both the dollar and the euro on Monday, reaching a three-month high as investors watched for signs of additional foreign exchange intervention after Japan and the U.S. stepped into markets last week. Japan and the U.S. conducted coordinated yen-buying intervention and Japan’s Finance Ministry said it would not hesitate to take further action, while traders tried to gauge how likely more operations are to follow. LiveMint Markets cited a Monex USA trader saying the key question is the probability of intervention recurring, noting such operations can be expensive. In the latest action, Japanese authorities may have spent as much as $36.58 billion to buy yen, based on central bank data reported in the piece. That brings total spending on two FX interventions in 2026 to more than $100 billion, according to the report. The yen also rose versus other currencies including the euro and sterling, prompting speculation about the possibility of further market involvement. The article also raised concerns that funding intervention could involve selling Treasuries to finance the trades, a move that could push bond yields higher, even as analysts said the coordinated approach could challenge the view that FX intervention has little long-term effect.