Japanese Yen Under Pressure Despite Intervention Warnings
The Japanese yen was under pressure again on Tuesday (June 23rd), hovering around 161.5 per US dollar. This position keeps the yen near its weakest level since 1986, despite repeated signals from the Japanese government that it is ready to intervene to stem the weakening of its currency.
Japanese Finance Minister Satsuki Katayama said she had spoken by phone with US Treasury Secretary Scott Bessent. During the conversation, both sides reaffirmed their agreement to coordinate in the foreign exchange market if necessary. This statement signals that Tokyo remains open to taking official action if the yen's depreciation worsens.
Investors are now on alert for the possibility of new intervention from Japanese authorities. The yen had previously strengthened on April 30th after Tokyo launched a large foreign exchange purchase operation. However, this gain has been completely erased, bringing pressure on the yen back to the forefront of market attention.
The yen's weakening persisted despite the Bank of Japan's interest rate hike. The market believes the increase was insufficient to narrow the interest rate gap between Japan and other major economies. At the same time, the US dollar continues to receive support from the Federal Reserve's hawkish signals, so pressure on the yen has the potential to persist in the short term. (asd)
Source: Newsmaker.id
