Yen's Recovery After U.S.-Japan Intervention Could be Limited

Dow Jones08-03 22:19

1419 GMT - The impact of last week's joint U.S.-Japan intervention to strengthen the yen could prove limited, ING's Chris Turner says in a note. The intervention doesn't change the fact that the Federal Reserve is close to raising interest rates and Japan is running a loose set of monetary and fiscal policies which are weighing on the yen, he says. "We struggle to see this bilateral action driving dollar-yen sustainably below 155." Nevertheless, it could prevent investors from pushing the dollar above 160 yen while buying time for Japan to introduce more yen-positive policies such as incentives to invest in domestic assets, he says. The dollar falls 0.6% to 156.69 yen after reaching a three-month low of 155.21 overnight, according to LSEG.

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