📌 🇯🇵 JAPANESE YEN WEAKNESS RETURNS, INTERVENTION EFFECTIVENESS QUICKLY WORSENS
💴 The Japanese yen remains under pressure as the exchange rate returns to around 159 yen/USD, after having surged to roughly 155 yen/USD.
👉 Notably, the US and Japan jointly intervened to support the yen, but the effectiveness of this move is rapidly fading as the market again pushes the exchange rate higher.
📉 This suggests that direct intervention in the FX market may only have a short-term effect if underlying factors have not changed. Interest-rate differentials, expectations for monetary policy, and international capital flows remain key determinants of the yen’s strength.
⚠️ If the yen continues to weaken, pressure on inflation in Japan could increase, while also raising the likelihood that Japanese officials will have to consider additional measures to support the domestic currency.
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💴 The Japanese yen remains under pressure as the exchange rate returns to around 159 yen/USD, after having surged to roughly 155 yen/USD.
👉 Notably, the US and Japan jointly intervened to support the yen, but the effectiveness of this move is rapidly fading as the market again pushes the exchange rate higher.
📉 This suggests that direct intervention in the FX market may only have a short-term effect if underlying factors have not changed. Interest-rate differentials, expectations for monetary policy, and international capital flows remain key determinants of the yen’s strength.
⚠️ If the yen continues to weaken, pressure on inflation in Japan could increase, while also raising the likelihood that Japanese officials will have to consider additional measures to support the domestic currency.
👇 HOT COIN TRADING HERE 👇
$ACE
$BICO
$EPIC