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Yen

All articles tagged with #yen

finance3 days ago•19 min saved

Debt Buybacks Spark Yen-Style Dollar Debasement Fears, Economist Warns

A plan by Treasury head Scott Bessent to increase long-term debt buybacks has prompted economist Robin Brooks to warn it could trigger a yen-like devaluation of the dollar as deficits widen and yields swing, describing the move as “debasement” risk. Brooks argues such financial engineering shifts risk premia away from real fundamentals, while others (like Capital Economics) say its impact on the dollar is overstated and that yields may rise due to the large deficits and new debt. The debate centers on whether the buyback is a meaningful fix or a symbolic Band‑Aid in a stressed Treasury market.

via Yahoo Finance|

#debt-buybacks #dollar-debasement #finance

business6 days ago•1 min saved

Japan rides chip boom to near four-year export surge

Japan's July exports rose 23.2% year on year, led by semiconductor shipments and a 49.1% jump in semiconductor equipment, marking the fifth straight monthly gain and the fastest pace since Oct 2022. Shipments to China climbed 25.8% and to the U.S. 22%, aided by a weak yen and higher selling prices even as volumes rose 5.2%. Imports gained 27.8%, driven in part by petroleum as oil prices climbed. The solid export performance supported GDP growth in Q2, with the yen weakening and the Nikkei edging higher after the data release.

via CNBC|

#business #china #exports

economy9 days ago•2 min saved

Japan's Q2 GDP hits 1.1% annualized, undershooting forecasts amid soft domestic demand

Japan's economy expanded 1.1% annualized in Q2, missing forecasts of about 2%, with a 0.3% quarterly gain and a 0.7% year-on-year growth as exports led the pickup aided by a weak yen; higher energy costs from the Middle East and softer domestic demand tempered momentum, while the BOJ nudged its 2026 growth outlook to about 0.6%.

via CNBC|

#economy #exports #gdp

markets10 days ago•6 min saved

Traders bet on renewed volatility in the yen after intervention

Two weeks after a joint US-Japan intervention aimed at stabilizing the yen, traders are increasingly betting on further moves as the dollar hovers around ¥159; the carry-trade dynamic—funding high-yield bets with cheap yen—keeps yen under pressure, aided by high US yields and cautious BOJ policy. While intervention may have slowed the slide for now, a disorderly unwind remains a market risk that could ripple through US tech and EM assets, so policymakers face a delicate balance.

via Financial Times|

#carry-trade #currencies #foreign-exchange

economy11 days ago•9 min saved

Sankaran calls for steadier, multilateral yen interventions

In an Unhedged interview, Karthik Sankaran says the US–Japan yen intervention met criteria for multilateral action and could become more regular, though its effectiveness hinges on the Bank of Japan’s policy. He argues that dollar centrality, not just strength, drives policy and advocates broader, less selective FX tools. He also weighs the renminbi as an alternative, noting that a stronger yen could encourage renminbi appreciation and benefit global south economies.

via ft.com|

#currency-intervention #economy #foreign-exchange

economics12 days ago•34 min saved

Japan Signals Near-Term BOJ Rate Hike to Shore Up Yen

Japan’s government, led by Prime Minister Sanae Takaichi, is said to back a near-term Bank of Japan rate increase (likely September or October) as yen weakness pressures prices and to amplify the impact of the recent US-Japan currency intervention, while emphasizing that monetary policy decisions remain with the BOJ and should be coordinated with the government to reach the 2% inflation target.

via Bloomberg.com|

#boj #economics #intervention

business12 days ago•4 min saved

Goldman: Japan has room for more yen support funded by Fed access

Goldman Sachs says Japan has enough cash—about $200 billion of its roughly $1 trillion in USD reserves—and access to the Fed's FIMA facility to fund a couple more rounds of large yen-buying intervention, potentially matching last month's size. With the yen around 160 per dollar after a historic two-day move and investors watching the BOJ's September policy meeting, the next intervention will hinge on the U.S.-Japan yield carry; analysts warn interventions aren’t a lasting fix, though they can buy time.

via cnbc.com|

#boj #business #fed-fima

business14 days ago•3 min saved

Yen Rally Fades as Yield Gap Undermines Intervention

A coordinated U.S.–Japan yen intervention cooled speculation but did not close the yield gap with the United States, leaving the yen vulnerable as carry trades persist; analysts say intervention slowed momentum but hasn’t changed fundamentals, and sustainable yen strength will depend on BOJ normalization and stronger Japanese asset appeal, with a possible second intervention if moves accelerate and Fed liquidity backstops remain in place.

via CNBC|

#boj #business #carry-trade

currency16 days ago•19 min saved

Yen Intervention Likely to Stall, Analysts Warn

U.S. efforts to shore up the yen are unlikely to yield a lasting recovery because Japan’s policy mix favors a soft currency for exporters, the US–Japan rate gap remains wide, and the intervention’s design (reportedly buying yen with euros rather than dollars) limits broader dollar-policy implications; without policy shifts in Tokyo or direct dollar selling, any yen rally is likely temporary.

via Yahoo Finance|

#boj-policy #carry-trade #currency

currency17 days ago•20 min saved

Goldman Doubts Yen Support Undermining Dollar's Global Lead

Goldman Sachs argues that US-Japan yen intervention is unlikely to threaten the dollar’s status as the world’s dominant reserve currency, pointing to the dollar’s deep capital markets and the Fed’s FIMA facility as crucial advantages during currency-support episodes. While policy uncertainty can weigh on the dollar, the bank notes that past instances where Treasuries were used to back currencies have typically reinforced the dollar’s central role.

via Yahoo Finance|

#currency #dollar #fx-intervention

economy17 days ago•4 min saved

Yen interventions pin policy gaps as US role raises eyebrows

Market watchers say Japan’s yen weakness reflects policy misalignment rather than disorderly markets, with the latest intervention around ¥155–¥160 briefly stabilizing the currency while the BoJ kept rates unchanged. The move’s lasting impact is unclear, given Japan’s energy dependence, fiscal ambitions, and a policy stance seen as too accommodative. The unusually active US participation—financing via the Fed’s facilities and using euros to buy yen—deviates from past, more symmetric G7 actions and raises questions about motives (including curbing US yield pressures). Overall, durable relief will require credible macro reforms rather than FX band-aids.

via OMFIF|

#economy #forex #intervention

business18 days ago•2 min saved

Yen rally stalls as policy path takes center stage

The yen’s brief rally from last week’s U.S.-Japan intervention has faded, with the currency hovering around 158.5 per dollar after peaking near 155 (from just above 163) as traders shift focus to Japan’s policy outlook rather than further intervention.

via CNBC|

#boj #business #currency

economy18 days ago•6 min saved

The yen rescue reveals the risks of experimental monetary policy

Gillian Tett argues that the yen intervention by Washington and Tokyo highlights the dangers of monetary experiments: Japan's ballooning debt, BoJ balance-sheet concentration, and political pressure against rate rises threaten long-term stability and could provoke wider market risks, making the fix potentially worse than the problem unless paired with prudent fiscal restraint and slower, steadier policy normalization.

via Financial Times|

#bank-of-japan #currency-intervention #debt-sustainability

business19 days ago•3 min saved

Joint U.S.-Japan Yen Intervention Signals a New FX Playbook

The rare U.S.-Japan currency intervention to prop up the yen, reportedly executed via a euro-yen cross and backed by both governments, signals that FX policy is increasingly intertwined with geopolitics. Analysts say the move could deter yen bears, shift funding away from yen carry trades, and push traders to price in policy reactions as a new market variable, potentially reshaping major FX positioning.

via CNBC|

#business #currency-intervention #forex

finance19 days ago•25 min saved

Rare Yen Rescue: US-Japan Action Signals Currency Stability Amid Inflation Fears

A rare US-Japan currency intervention was launched as the yen plunged to multi-decade lows, with Treasury Secretary Scott Bessent pledging the administration would do whatever it takes to support the yen and shield the American economy from volatility and higher borrowing costs. The move aims to reduce the risk of broader financial turmoil and inflation, though currency swings could still affect the prices of imported goods for Americans over time. The piece also discusses inflation hedges like gold, crypto, and private real estate as diversification options, citing CNBC, Reuters, the Federal Reserve Bank of New York, and Nikkei Asia.

via Yahoo Finance|

#currency-intervention #finance #inflation