Arab Press

بالشعب و للشعب
Saturday, May 31, 2025

Dollar falls against yen, markets suspect intervention

Dollar falls against yen, markets suspect intervention

The battered yen jumped against the dollar on Friday, triggering speculation that Japanese authorities may be in the market to stem a slide in their currency.

The yen rose as high 144.80 per dollar in late morning U.S. trade, up about seven yen from a 32-year peak of 151.94 yen. Dollar/yen was last down about 1.5% at 147.95.


COMMENTS


MAZEN ISSA, SENIOR FX STRATEGIST, TD SECURITIES, NEW YORK

"It’s very clearly the Ministry of Finance stepping in to sell dollar-yen.

"It seems like, actually, just looking at the evolution of some of the portfolios … these are the sorts of assets they have on their balance sheet, you know, the securities portion of that balance sheet had been declining a lot and that is really Treasuries, so, given some of the price action in fixed income markets this week, particularly in the U.S. curve would be indicative that they are likely selling Treasuries to help fund any intervention."

"They are trying to staunchly defend their very easy policy.

"It’s long been understood and a lot of historical evidence to suggest this is the case, that fx intervention is a temporary fix and it is not sustainable."

"I would say today’s move has been uniquely timed in that it followed the Wall Street Journal article about any sort of calibration risks."

"And then two, a lot of folks had been looking at 150 as a key level that they would see some kind of intervention, and they let it run through to basically 152 and then the timing of their intervention happened at a very illiquid time, basically, as London was about to head home for the weekend, and it seems like it is designed to inflict as much pain as possible on, they like to use the term, speculators. So, we saw the finance minister I think last night talk about strictly talking about speculators. And so, I would say a week before the Bank of Japan meeting I think it’s indicative that they want to continue to defend that policy, but I think their timing is designed to do as much damage as possible to those trying to take top-side bets on dollar-yen."

COLIN ASHER, SENIOR ECONOMIST, MIZUHO, LONDON


"The price action certainly makes it appear like intervention. If it is intervention it is well timed after the Wall Street Journal article knocked the stuffing out of the ever upward rise in U.S. Treasury yields."

KARL SCHAMOTTA, CHIEF MARKET STRATEGIST, CORPAY, TORONTO


"It looks like the Ministry of Finance is intervening here. We are seeing lots of dollar selling and the yen moving almost vertically as shorts get squeezed."

"We are hearing large blocks are being traded. That typically means either larger institutions are moving money or that a central bank is intervening in size. The clearest evidence is just the scale of dollar selling that is happening."

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
Head of Gaza Aid Group Resigns Amid Humanitarian Concerns
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Netanyahu Accuses Starmer of Siding with Hamas
Calls Grow to Resume Syrian Asylum Claims in UK
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Denmark Increases Retirement Age to 70, Setting a European Precedent
Iranian Director Jafar Panahi Wins Palme d'Or at Cannes
Israeli Airstrike Kills Nine Children of Gaza Doctor
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
Mount Lewotobi Laki-Laki Erupts Again, Spewing Ash Cloud over Flores Island
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
Michael Jordan to Serve as Analyst for NBA Games
Senate Democrats Move to Censure Trump Over Qatar Jet Gift
Hamas Releases Last Living US Hostage from Gaza Amid Ongoing Conflict
×