Revisiting 1998: Will a Yen Intervention Reshape Markets Again?
TL;DR Summary
FT Alphaville explains the latest US-Japan yen intervention, arguing it echoes but may not replicate the 1998 episode: the 1998 move produced a brief intraday yen rally before renewed weakness as Russia’s default and the LTCM crisis unleashed a global unwind; today’s intervention sent the yen to about 155.5 intraday, but the outlook remains uncertain and likely hinges on exogenous shocks and potential Fed easing rather than a lasting reversal in the yen’s trend.
- Remember when the US Treasury caused that major yen rally in ‘98? Financial Times
- A Currency Trader at Heart, Bessent Bets on Japan’s Yen The New York Times
- Carry Trade Is Powering On as Investors Sidestep Yen’s Gains Bloomberg.com
- Opinion | Can the U.S. Treasury Save the Yen? WSJ
- Why the Trump administration is helping support Japan’s weakening yen Al Jazeera
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