Following remarks by Japan’s prime minister and finance ministry, the yen hit a two-month high and USD/JPY fell nearly 3%, intensifying speculation of coordinated US-Japan forex intervention.
On Jan. 27, the US dollar weakened and the yen surged to a two-month high after comments from Japan’s prime minister and finance ministry fueled speculation of joint forex intervention. USD/JPY fell nearly 3% over two days, marking the sharpest drop since April’s tariff turmoil. This follows Jan. 26 remarks by State Street’s Masahiko Loo, who said the odds of US-Japan currency intervention had risen, citing a reported interest rate check as a potential signal and warning the yen could slide toward 162 per dollar without action.