Markets Underpricing Risk of Further Yen Interventions -- Market Talk

Dow Jones06-02 17:13

0913 GMT - The options market's measure of expected foreign-exchange swings, or implied volatility, indicates traders are underpricing the risk of further interventions to shore up the Japanese yen, ING's Francesco Pesole says in a note. "Dollar versus the yen short-term implied volatility (one week to three months) has followed a broader fall in G-10 volatility, failing to show the risk of renewed FX intervention as the pair nears 160.00 yen," he says. Markets might be assuming the Bank of Japan will wait to see whether a potential interest-rate rise on June 16 will stem the yen's decline, he says. The dollar trades steady at 159.72 yen. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

June 02, 2026 05:13 ET (09:13 GMT)

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Markets might be assuming the Bank of Japan will wait to see whether a potential interest-rate rise on June 16 will stem the yen's decline, he says. The dollar trades steady at 159.72 yen. 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Markets might be assuming the Bank of Japan will wait to see whether a potential interest-rate rise on June 16 will stem the yen's decline, he says. The dollar trades steady at 159.72 yen. 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Markets might be assuming the Bank of Japan will wait to see whether a potential interest-rate rise on June 16 will stem the yen's decline, he says. The dollar trades steady at 159.72 yen. 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