Coordinated currency intervention by Japan and the US drove USD/JPY to 155.20 before the pair recovered to 158.50 amid Fed rate hike expectations.
USD/JPY fell to 155.20 on 3 August after Japan’s Finance Minister confirmed coordinated intervention with US authorities. The pair opened near 157.58 but dropped sharply following official statements from Tokyo and Washington.
The yen’s decline reversed as the pair climbed back above 158 by 4 August, supported by signals from both governments that further intervention remained possible. Fed Chair Kevin Warsh’s comments on a potential September rate hike further lifted the dollar to 158.50 on 6 August.
USD/JPY stabilized above 158 on 7 August, pausing a post-FOMC dollar retreat. The intervention followed last week’s sharp moves in major currencies, with authorities emphasizing readiness to act again if needed.