Home›Forex›Central Banks›Yen undervaluation narrows after Japan and US coordina…

Yen undervaluation narrows after Japan and US coordinate second 2026 intervention

DBS says the coordinated action, rare since 2011, is aimed at easing pressure on Asian currencies including the won and the renminbi.

Reported · Written up by our desk · Central Banks

Japan’s second foreign exchange intervention of 2026, carried out jointly with the United States, has helped narrow how undervalued the Japanese yen (JPY) is, according to DBS Group Research.

DBS strategist Chang Wei Liang said the yen was still undervalued, but that the gap has narrowed following the coordinated intervention.

The research notes that the joint effort is rare, last seen in 2011, and was designed to curb yen weakness and reduce spillover pressure on other Asian currencies.

FXStreet also highlighted that traders are watching upcoming US CPI data closely, as it could influence the Federal Reserve’s next interest rate decision and affect the US dollar valuation.

More like this

Sources