Intervention Risk Limits Yen Falls Against Dollar

Dow Jones10-13

0909 GMT - The risk of further interventions to support the Japanese yen curtails the currency's scope to fall against a strengthening dollar, MUFG Bank's Lee Hardman says in a note. Japan's Prime Minister Sanae Takaichi reiterated that U.S. and Japanese finance ministers remain in close contact on foreign exchange. The yen has remained at stronger levels since the joint U.S.-Japan intervention in late July. The yen is also supported by building expectations for a faster pace of Bank of Japan interest-rate rises, Hardman says. "In the current environment of broad-based dollar strength, we expect the yen to continue to perform better against non-dollar crosses." The dollar falls 0.4% to 157.93 yen after reaching a two-and-a-half-week high of 158.75 Monday, LSEG data show.

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