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Yen holds steady after landmark intervention as dollar nears lows
The dollar stayed near six-week lows as hopes for an end to the Iran war eased safe-haven demand, while markets watched Friday’s U.S. jobs report for Fed signals.
The Japanese yen steadied on Wednesday following a historic intervention, while the dollar hovered near six-week lows against major peers as renewed hopes for an end to the Iran war reduced safe-haven demand, according to Reuters.
The yen was slightly stronger on the day at 157.72 per dollar, after falling 0.4% on Tuesday. It had strengthened on Monday to 155.2 per dollar after earlier trading around 164, its weakest in 40 years, about a week earlier.
The U.S. Treasury Secretary Scott Bessent said the United States would do whatever it takes to support Japan’s efforts to stabilize the yen. Reuters noted the first yen-buying intervention by U.S. authorities since 1998 occurred after joint purchases by Tokyo and Washington on Friday, after which the dollar hit its lowest versus the yen in three months.
Traders pointed to potential limits of intervention, with Bannockburn Capital Markets’ Marc Chandler saying markets could still test central bank resolve. Reuters added that the U.S. monthly employment report on Friday could shape expectations for near-term Fed policy, while markets also weigh the likelihood of Bank of Japan rate action at its September 17 to 18 meeting.