yen, Dollar
Digest more
The Singapore dollar weakened slightly against its U.S. counterpart in the Asian session on prospects that the Fed may pause rate cuts.
Japanese Yen faces its biggest weekly drop since October as markets anticipate Sanae Takaichi's Liberal Democratic Party election win and new fiscal measures.
The U.S. dollar fell across the board and the Japanese yen jumped to a more than two-month high on Monday as speculation mounted about joint U.S.-Japan currency intervention after remarks from Tokyo's prime minister and Japan's leading currency diplomat.
Japanese Prime Minister Sanae Takaichi has talked up the benefits of a weaker yen in a campaign speech, adopting a tone at odds with her finance ministry which has refused to rule out any options to counter excessive foreign exchange volatility.
The yen extended gains to as much as 1.2% against the dollar as traders are on heightened alert for authorities intervening in the market following its recent slide.
Japan’s yen surge sparks intervention fears as Fed involvement looms, with major implications for the dollar, crypto, and global markets.
For most of the 2000s, the yen traded in a range of about 100-120 to the dollar. The rate broke higher when the war in Ukraine drove up energy import costs as monetary policy diverged between the Bank of Japan and the U.S. Federal Reserve.
Forex traders seem happy to play another game of chicken with the Japanese authorities as they once again push the yen lower. The yen surged on Jan. 23 after rumors hit the market that the Bank of Jap
The fact that the yen has been so weak against a falling greenback is remarkable. It is doubly striking, because the gap between Japan’s low interest rates and America’s higher ones has shrunk by nearly a third over the same period. Converging rates would usually bring currencies closer into line.
By Makiko Yamazaki and Takaya Yamaguchi TOKYO, Feb 3 (Reuters) - Just as Japan was finally gaining ground in its long, hard fight to stop sharp currency falls, a fresh challenge has emerged from its own prime minister,