FX.co ★ Yen Pauses Rally as Intervention Threat Remains

The Japanese yen hovered around 157.5 per dollar on Wednesday, pausing its recent rally even as US Treasury Secretary Scott Bessent reiterated Washington’s continued support for Japan following a historic joint currency intervention. The yen had climbed as much as 5% over three sessions after Tokyo and Washington launched coordinated yen-buying operations on a scale not seen in decades, with both governments indicating they remain ready to step in again if needed. Bank of Japan data showed Tokyo spent about ¥5.33 trillion in Friday’s operations, after reportedly conducting a record ¥8.45 trillion intervention the previous day. The yen had fallen to four-decade lows last month, pressured by higher energy costs, growing fiscal worries, and persistently wide interest rate differentials. Meanwhile, the latest data showed Japan’s real wages rose for a sixth straight month in June, strengthening the case for further interest rate hikes by the BOJ.