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Yen holds steady after intervention as dollar near six-week lows
The dollar stayed near six-week lows after hopes for an end to the Iran war reduced safe-haven demand, while traders watched the U.S. jobs report for Fed expectations.
The Japanese yen steadied after a historic intervention, trading at 157.72 per dollar, a slight gain on the day following a 0.4% drop on Tuesday, according to Reuters.
The dollar hovered near six-week lows against major peers as renewed optimism about an end to the Iran war eased safe-haven demand. Investors also digested the scale and limits of intervention, noting it had been the first yen-buying move by U.S. authorities since 1998, with joint purchases by Tokyo and Washington on Friday.
U.S. Treasury Secretary Scott Bessent said the U.S. would do whatever it takes to support Japan's efforts to stabilize the yen, comments that echoed former European Central Bank President Mario Draghi’s 2012 pledge to preserve the euro during the regional debt crisis. Still, market participants cautioned that central banks are not defending a fixed level, and intervention may only slow depreciation rather than change longer-term trends.
Traders pointed to upcoming catalysts, including the U.S. monthly employment report on Friday, which could shape expectations for near-term Fed policy. Reuters also reported that Bank of Japan Governor Kazuo Ueda was expected to act for Japan’s economy ahead of the BOJ’s next policy meeting on September 17 and 18.