The Japanese yen is surging, reviving an uncomfortable memory for investors: the carry-trade turmoil of the summer of 2024. Early on Wednesday, a dollar bought about 153 yen, about 4% fewer than at the start of the month and 2% fewer than at the start of the year as the Japanese currency strengthened. The currency
Washington and Tokyo’s rare joint intervention to support the yen has put renewed focus on Japan, the largest foreign holder of US Treasurys. Early on Tuesday, the dollar-yen pair traded at around 157 against the dollar after rebounding from a nearly four-decade low of around 164, following intervention by US and Japanese authorities on Friday.
The US and Japan carried out their first coordinated yen-buying intervention in nearly three decades on Friday, stepping into currency markets after the yen weakened to a 40-year low against the dollar. Japanese Finance Minister Satsuki Katayama confirmed the operation on Monday and warned that the two countries could intervene together again if needed. The
