US Confirms $500 Million Spent on Yen Intervention, With Euros
Later report: Dollar near 19-mth high on rate hike bets; yen back on intervention watch Investing.com ·
A Federal Reserve Bank of New York report confirmed previous indications that the US Treasury used roughly $500 million worth of euros from its holdings in the July 31 intervention to prop up the yen that was coordinated with Japan.
US Treasury bought yen in July, its first intervention since 1998, as yen nears 160 again
The report confirms that the US is a willing partner in yen support, not just a bystander. That raises the risk for anyone betting heavily on dollar-yen above 160, a level that now looks well defended. Positioning is likely to turn more cautious as the pair approaches the summer’s intervention zone, and volatility could spike on any further rate checks. Rate expectations still favour the dollar, though, because the US economy is resilient and inflation is high. That means intervention may only slow the yen’s slide unless the BOJ follows through with a December hike to 1.5%. --- Yesterday: Japan’s Mimura warns yen moves are too rapid as USD/JPY pushes back toward 160 --- Washington has now confirmed that it put its own money behind the yen this summer. With the currency back near 160, the main question is whether Tokyo and Washington can hold that line again. Summary: The New York Fed bou
