Now Reading: Yen loses half of intervention gains; Aussie-yen eyes 35-year high
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Yen loses half of intervention gains; Aussie-yen eyes 35-year high
Yen loses half of intervention gains; Aussie-yen eyes 35-year high
The yen weakened to 158.45 against the dollar on Friday, losing nearly half the gains from last week’s joint US-Japan intervention that had pushed it to 155.23. The Aussie-yen pair is recovering…
The Story in Brief
The yen weakened to 158.45 against the dollar on Friday, losing nearly half the gains from last week’s joint US-Japan intervention that had pushed it to 155.23. The Aussie-yen pair is recovering toward a 35-year high near 114.80 as intervention effects fade and the RBA’s hawkish outlook supports the Australian dollar, according to ANZ and Credit Agricole strategists. Commonwealth Bank cautions the rally has limited room, forecasting a slide to 108. Markets now await the RBA’s August 11 decision, with swaps pricing roughly a 50% chance of a rate hike by year-end.
The Indian Opinion
The yen has surrendered nearly half the ground it gained after Japan and the US jointly intervened last week, with the dollar climbing back to 158.45 yen. The pullback highlights the limits of currency intervention against a wide interest-rate gap to the US, high Japanese debt load and geopolitical uncertainty. Meanwhile, the Australian dollar is poised to approach a 35-year high against the yen as fading intervention effects and the Reserve Bank of Australia’s hawkish stance bolster the cross. ANZ and Credit Agricole see further upside, while Commonwealth Bank flags limited room. Markets now watch the RBA’s next policy decision for rate signals.
Sources (2): livemint.com, livemint.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
