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Japan Weighs Pause on Yen Intervention After Rare U.S. Rate Checks

A rare U.S. rate‑check signal has cooled selling pressure, reducing the urgency for yen‑buying operations.

Overview

  • Atsushi Takeuchi, a former BOJ official involved in past interventions, said coordinated tactics with the United States have curbed a one‑sided yen decline.
  • Suspected New York Fed rate checks on Friday signalled Washington’s willingness to cooperate with Tokyo’s efforts to stabilize the currency.
  • The yen rallied more than 1% to a three‑month high near 152.10 per dollar on Tuesday on talk of U.S.–Japan rate checks seen as a warning to speculators.
  • Japanese authorities are prioritizing the prevention of sharp, one‑directional moves rather than defending specific exchange‑rate levels, according to Takeuchi.
  • Takeuchi warned that direct yen‑buying could trigger a rapid rebound and pressure stocks as Prime Minister Sanae Takaichi faces an election next month.