Yen surges to 155 versus dollar for second day amid intervention talk
The Japanese yen surged to 155 against the dollar, its strongest level in 34 years. Markets have reduced yen-selling bets as expectations build for the BOJ's continued monetary normalisation. Finance Ministry signals of intervention readiness show efforts to manage yen appreciation pace.
The BOJ's monetary tightening and rate-hike signals have made yen carry trades less attractive to international investors. The yen's 2% two-day gain against the dollar signals accelerated position unwinding. The Finance Ministry is monitoring dollar-yen parity and keeping the door open for possible intervention.
Financial markets show forward yen prices rising from 150 to 155, signalling real interest rate differentials turning in the yen's favour. With the Japanese government's 2026 budget forthcoming, yen appreciation could negatively impact exporters.
Analysts expect Finance Ministry intervention odds are low if yen stays below 150, but higher if it breaches 155. The BOJ's near-term rate decisions remain critical signals for investors.
More from Japan
Japan stocks close at historic high on hopes for progress in US-Iran talks
The Nikkei 225 index surged to a historic record on optimistic reports about US-Iran peace talks. Japan's equity market has broken all-time highs amid regional stability hopes.
Japan's IHI, Mitsubishi Heavy race to train nuclear plant workers
Japan's IHI and Mitsubishi Heavy Industries are expanding worker training programs for nuclear plants as the country accelerates reactor restarts amid energy security concerns.
Honda to shelve $11bn Canada EV plant as demand sputters
Honda announced it is shelving its $11 billion Canadian EV plant amid weakening demand for electric vehicles and market uncertainty.