Yen Extends Rally as Markets Weigh Further U.S.-Japan Intervention

BitcoinWorld Yen Extends Rally as Markets Weigh Further U.S.-Japan Intervention The Japanese yen extended its rally on Monday, as traders speculated that Japanese authorities may intervene again in the foreign exchange market to support the currency, following a recent round of suspected intervention.

What’s Driving the Yen’s Rally? The yen has strengthened sharply over the past week, with the USD/JPY pair falling from multi-decade highs above 160 to the mid-150s.

This move comes amid growing expectations that Japan’s Ministry of Finance will step in to prop up the currency, which has been under pressure due to the wide interest rate differential between Japan and the U.S.

Data from the Tokyo Commodity Exchange and other sources indicate that Japanese officials likely conducted intervention on at least two occasions in the past two weeks, spending an estimated ¥6 trillion (approximately $38 billion) to buy yen and sell dollars.