GBP/JPY trades near 218.15-218.20 region amid intervention fears
The British Pound is holding above its weekly low against the Japanese Yen, currently trading around the 218.15-218.20 region.
The interest rate differential between Japan and the UK is around 275 basis points, keeping the carry trade active.
Japan’s Finance Minister reiterated that the government is ready to take decisive action on foreign exchange as needed, supporting the Yen.
The Bank of Japan has cautiously started to normalize policy, lifting the short-term policy rate in June to 1.00%, its highest since 1995.