U.S. Factors Could be Main Influence on Yen as Intervention Effects Subside
Dow Jones
Aug 27
1136 GMT - Developments in the U.S. could be the key drivers of the Japanese yen rather than domestic factors as the effects of recent intervention fade, strategists at UBS Global Wealth Management say in a note. The U.S. and Japan conducted coordinated forex intervention on August 3, which pushed the dollar as low as 155.21 yen, LSEG data show. The dollar has since recovered some of its losses and is last up 0.1% at 159.48 yen. A resilient U.S. economy and a Federal Reserve that is possibly willing to raise interest rates in the coming months should continue to support the dollar against the yen, the strategists say. However, dollar strength could moderate if upcoming data justify the Fed remaining on hold, they say.
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