Revisiting 1998: Will a Yen Intervention Reshape Markets Again?
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.