Yen Surges, Analysts Suspect Official Japanese Intervention
Analysts warn a 2024-style unwind could drain crypto liquidity as the Bank of Japan weighs rates and USD/JPY nears 40-year highs.
- On Tuesday, USD/JPY approached 164, marking new 40-year highs as the Japanese yen continues depreciating. The BoJ will decide on interest-rate adjustments on Thursday and Friday this week.
- Markets expect The Bank to maintain its 1.0% benchmark rate, with prediction service Polymarket showing a 99% probability of no change. This rate is currently at its highest since 1995.
- The Bank noted that exchange rate developments are more likely to affect underlying Consumer Price Index inflation, as firms shift behavior toward raising wages and prices. Officials signaled intent to continue adjusting monetary accommodation.
- Analysts warn that potential yen carry trade unwinds could repeat 2024 volatility. Such events previously pressured Bitcoin, creating significant concerns for crypto markets facing a liquidity crunch.
- Beyond immediate rate decisions, analyst Ricky Ho noted that the fundamental direction of policy has changed. This shift could have wider consequences for a global economy accustomed to Japan's previous economic status quo.
15 Articles
15 Articles
Japan conducts massive yen-buying intervention, Nikkei reports
TOKYO, July 31 (Reuters) - Japan conducted massive yen-buying, dollar-selling market intervention in New York markets on Thursday, the Nikkei newspaper reported, citing market sources. U.S. authorities also conducted so-called "rate checks," which ar...
Channel News Asia
CNBCYen surges, analysts suspect official Japanese intervention
LONDON/NEW YORK/TOKYO, July 30 : Japan's yen surged on Thursday against the U.S. dollar by the most since 2022, in what analysts said looked like official intervention by Tokyo to prop up the currency that had been languishing at four-decade lows.The Japanese finance ministry’s (MOF) foreign exchange divis
Zero Hedge
Japanic: Yen Suddenly Spikes Stoking Intervention Speculation
ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
Cointelegraph
The New York LedgerYen Carry Trade At Risk Amid New 40-Year Highs Against US Dollar
The Japanese yen is eyeing new 40-year highs against the US dollar around the Bank of Japan’s next interest-rate meeting with the yen carry trade in focus for crypto.
Markets Watch BoJ Meeting as Yen Holds Near 40-Year Lows vs USD
Japan’s next monetary policy decision is coming into sharper focus as the yen keeps sliding toward fresh 40-year lows against the US dollar. With the Bank of Japan (BoJ) scheduled to meet on July 31, markets are weighing whether policymakers will pause at current levels—or signal further tightening as the currency weakens. The immediate question for global markets, and particularly for crypto traders, is how much pressure a yen slide can add thr…
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