Risk of FX intervention is higher when the yen is underperforming, which the currency has only just begun to do, says RBC Capital Markets' Abbas Keshvani in an email. "For now, JPY is not as weak against Japan's major trading partners' currencies as it was before previous rounds of intervention," the director of Asia Macro Strategy says. The yen's nominal effective exchange rate has only fallen 0.7% during the past month, Keshvani estimates. By contrast, the yen NEER dropped 1.4% in the month before May's FX intervention and declined 2.4% in the month before July 2024's FX intervention, Keshvani estimates. The dollar is 0.2% lower at 162.21 yen, according to LSEG data. (ronnie.harui@wsj.com)
Dow Jones Newswires
Risk of FX Intervention Higher When Yen is Underperforming — Market Talk
Risk of FX intervention is higher when the yen is underperforming, which the currency has only just begun to do, says RBC Capital Markets' Abbas Keshvani in an email. "For now, JPY is not as weak against Japan's major trading partners' currencies as it was before previous rounds of intervention," t…