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Yen slides below 160 per dollar as Bessent calls moves contained

Japan’s industrial production was flat month over month in July, while the yen moves have tempered expectations of immediate joint intervention ahead of the BoJ’s Sept. 17 to 18 meeting.

Reported · Written up by our desk · Major Pairs

The yen moved to trade below 160 per US dollar, with markets focusing on whether additional action is needed as the Bank of Japan prepares for its Sept. 17 to 18 meeting, according to FXStreet.

BNY’s Wee Khoon Chong pointed to strong Japanese macro data and resilient housing and commerce indicators as support for the idea that Japan has exited deflation and BoJ normalization remains in play.

In July, Japan’s industrial production was flat month over month, shipments rose 2.2% month over month, and inventories increased 0.5% month over month, while the inventory ratio fell 1.7% month over month.

Separately, U.S. Treasury Secretary Scott Bessent described recent yen moves as “pretty well-contained” and not disorderly, reducing expectations of imminent joint US-Japanese intervention. He also said he expects BoJ Governor Kazuo Ueda to “do the right thing” on policy, while declining to direct Japan on rates, and noted he plans to meet Ueda at the G20 gathering in Asheville.

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