Yen jumps to one-month high as traders weigh chance of further intervention
U.S. Treasury Secretary Scott Bessent told CNBC on Monday he believed Japanese authorities would take action to lead to a stronger yen.
The yen surged to a one‑month high against the U.S. dollar on Thursday, as traders weighed the chance of further Japanese intervention amid growing expectations for a Bank of Japan rate hike. The currency’s sharp rise follows a similar 1% jump on Wednesday that reignited speculation about possible official action.
Yen Gains Against Dollar and Other Currencies
LSEG data showed the yen climbing more than 1% versus the greenback, briefly touching 156.34 per dollar. That level marks the strongest yen‑dollar rate since Aug. 3, just after the United States and Japan carried out a joint intervention on July 31 to support the weakening yen. By 4:20 a.m. ET on Thursday, the yen was quoted at 157.1 per dollar and also posted gains against the euro and the British pound.
Japanese Officials Signal Heightened Vigilance
Atsushi Mimura, Japan’s Vice Finance Minister for International Affairs, told Reuters that authorities were “neither satisfied nor reassured” by recent market moves and that they remain “on a state of heightened alert.” The comment came as Japanese government‑bond yields eased after a solid sale of 30‑year debt on Thursday, providing relief from pressure caused by a global sell‑off and concerns over Japan’s fiscal outlook as it finalizes its 2027 budget.
Intervention Speculation and Recent Spending
The Wednesday spike sparked debate about whether Tokyo had staged another round of market support. Earlier in the week, the yen had slipped past the 160‑per‑dollar threshold, a level often viewed as a trigger for official action. Japan’s finance ministry reported that the government spent a record 15.4 trillion yen (about $98 billion) to bolster the yen between July 30 and Aug. 26. The United States also confirmed participation in a coordinated effort in late July, using its foreign‑currency reserves to buy yen, though the exact amount was not disclosed. A July 31 Reuters photo showed Treasury Secretary Scott Bessent’s notepad with a note reading “Buy Japanese Yen (JPY) $5‑10 bil.”
Market Implications and Investor Concerns
Bessent told CNBC on Monday that he expected the Japanese government and the Bank of Japan to take steps that would strengthen the yen, and he privately urged officials to clarify the future path of interest rates, according to local media. Both Washington and Tokyo have warned that disorderly moves in the yen could unsettle global markets. Analysts note that a persistently weak yen might lead Japanese investors—who hold roughly $1.1 trillion of U.S. Treasurys, the largest overseas holding—to cut their Treasury positions, potentially affecting demand for U.S. debt.
Analyst Views on Recent Moves
Japan Macro Advisors’ chief economist Takuji Okubo told CNBC that Thursday’s rise could be “possible” evidence of further Japanese intervention, but he added that the Ministry of Finance has not conducted “small stealth interventions” in recent history. Okubo suggested the move was more likely a market reaction to Bank of Japan Governor Kazuo Ueda’s comment that a rate hike in September was highly probable. ING’s global head of markets Chris Turner echoed doubts about Wednesday’s move being an intervention, citing a lack of disruption in FX electronic matching systems at the time.
The Bank of Japan is slated to decide on monetary policy on Sept. 18, with markets increasingly pricing in a rate increase. As traders continue to assess the likelihood of additional intervention, the yen’s performance against major currencies will remain a focal point for investors and policymakers alike.
Source: cnbc.com · 2026-09-03