Yen Rises for Third Consecutive Session Amid Intervention Concerns
The Japanese yen rose for a third consecutive session on Monday, with traders watching closely for potential government intervention after Tokyo and Washington supported the currency last week. The yen reached its strongest level in about three months at 155.20 per dollar before trimming gains slightly to end near 156.65. Analysts noted that short-yen positions had built up, contributing to a rapid appreciation of the currency following coordinated intervention by Japan and the U.S. Japan's finance ministry confirmed joint yen-buying efforts with Washington on Friday, while data suggested Tokyo may have purchased as much as $58.97 billion in yen earlier in the week. The dollar index remained relatively stable at 99.79 despite a drop in oil prices and concerns over Japan’s expansionary fiscal policy potentially weighing on its currency. The euro edged up slightly against the dollar, having reached a one-and-a-half-month high during Asian trade. Market participants remain focused on whether the Federal Reserve will raise interest rates in September as part of ongoing monetary policy decisions.
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Topics: FX market government intervention USD/JPY yen