Yen Pinned Near 40-Year Low in Test of Tokyo's Intervention Resolve
Investors scaled back Fed hike bets after weak U.S. payrolls data, while the yen stayed near a 40-year low and traders watched for Tokyo intervention.
- On Monday, the dollar index steadied near a two-week low as investors scaled back bets on a Federal Reserve rate hike this year, following reports showing June job growth slowed sharply.
- The Japanese yen remains near a 40-year low, keeping investors nervous about potential currency intervention by Tokyo as traders fear officials may abandon telegraphing risks to squeeze speculators.
- Investor focus shifted to the Fed's upcoming June meeting minutes while the euro traded at $1.1435 and sterling at $1.3351, offering insight into policymakers' thinking for the second half of 2026.
- Marc Chandler, chief market strategist at Bannockburn Global Forex, noted "some large pools of capital have bought short-dated dollar puts," while OCBC strategists warned intervention is unlikely to change the pair's direction.
- Despite rate-cut bets, OCBC strategists maintain a declining unemployment rate points to a still-tight labor market, and analysts project a moderate 2-3% appreciation in the dollar during the second half of 2026.
19 Articles
19 Articles
Yen Near 40 Year Low as Intervention Concerns Return
The Japanese yen has remained under sustained pressure in recent months as the gap between Japanese and U.S. interest rates continues to encourage investors to move money into higher yielding assets. Although the Bank of Japan has gradually moved away from its ultra loose monetary policy, the pace of policy tightening has remained much slower […] The post Yen Near 40 Year Low as Intervention Concerns Return appeared first on Modern Diplomacy.
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U.S. Dollar Holds Near Two-Week Low as Fed Rate Expectations Ease and Yen Stays Under Pressure
The U.S. dollar traded near a two-week low on Monday as investors reassessed the outlook for Federal Reserve interest rates following weaker-than-expected U.S. employment data. At the same time, the Japanese yen remained close to its weakest level in four decades, keeping global currency markets focused on the possibility of intervention by Japanese authorities.
Dollar near two-week lows as rate-hike bets recede, embattled yen in focus
Shafaq News - Baghdad: The US dollar approached its lowest level in two weeks during trading on Monday, after investors reduced their bets on an interest rate hike by the Federal Reserve, while the Japanese yen remained under pressure near its lowest level in 40 years. The euro traded at $1.1435, while the British pound reached $1.3351, and the dollar index, which measures the performance of the US currency against a basket of six major currenci…
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