Yen falls for consecutive 2 weeks, approaching the 160 threshold; FX intervention risk resurfaces
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AT A GLANCE
The yen declined for 2 consecutive weeks and neared the 160 threshold, drawing renewed attention to the risk of Japanese foreign-exchange intervention.
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Yen declines for consecutive 2 weeks, approaching 160 the threshold, foreign exchange intervention risks re-emerge
BlockBeats reported that,September 24, as Japan ends its holiday, the risk of yen intervention has once again become a focus. The yen has declined consecutively 2 weeks, bringing it close once again to the closely watched 160 threshold. Strategists believe that the 160 threshold has once again become a test of Japan's tolerance for yen depreciation, as the yen continued to weaken after the Bank of Japan's September 18 policy meeting. Although the Bank of Japan accelerated its tightening cycle, dissent exists within the committee, while the United States appears to be heading toward a more hawkish path.
Carol Kong, a currency strategist at the Commonwealth Bank of Australia, said that if U.S. yields continue to rise and the market continues to test Japan's resolve to defend the yen,USD against the yen could soon break through 160. A rapid break through that threshold would materially increase the likelihood of official action, especially given recent reports that Japan conducted a rate check and the precedent of coordinated intervention. (Jinshi)
Original link https://m.theblockbeats.info/flash/368777
Key points
01
The yen fell for consecutive 2 weeks, again nearing 160 threshold.
02
The Bank of Japan held a policy meeting on September 18 and the yen continued to weaken after the meeting.
03
Commonwealth Bank of Australia currency strategist Carol Kong said that if U.S. yields continue to rise, USD against the yen could soon break above 160。
04
Reports said that Japan recently conducted rate checks, and that there is precedent for coordinated intervention.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
The yen continues to depreciate, USD against the yen is approaching 160, this closely watched level. The market is concerned that if the exchange rate quickly breaks through 160, the likelihood of Japanese authorities taking action would increase.
Why it matters to readers
160 The level could affect market expectations of whether Japan will undertake foreign exchange intervention; changes in U.S. yields could also continue to affect USD against the yen.
USD A rise against the yen usually indicates that the yen is relatively USD weaker. Foreign exchange intervention is the official act of influencing exchange rates through market operations.
Risks and unknowns
The materials do not confirm whether Japanese authorities have already intervened or will actually intervene.
Reports say that Japan recently conducted exchange-rate checks, but the materials do not provide official confirmation.
USD Whether it will break through against the Japanese yen 160, depends on subsequent movements in US yields and the market.
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Related concepts
160 level
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