Japanese officials warn of possible further intervention in the yen

CryptoWorld News: The impact of the yen intervention appears to be “unsustainable,” and Japanese officials issued an implicit warning that further intervention could be carried out again. With the yen rebounding on the back of intervention facing the risk that the uptrend may quickly fade, the possibility increases that Japan may have to enter the market again to support the exchange rate.

On Friday morning in Tokyo time, the yen weakened slightly again, after having surged by 3% at one point on Thursday, when Japan bought yen in the market and sold U.S. dollars. Although Japan’s top foreign exchange official declined to confirm whether intervention had taken place, an informed source said that the authorities indeed had entered the market to carry out operations. Another insider said that U.S. economic agencies had been made aware of the relevant information before this action. The yen’s move that gives back its initial gains could repeat the situation seen in 2024, when Japan repeatedly intervened to counter the yen’s weakness.

On Friday, Jun Muramura, Finance Ministry finance officer of Japan, delivered an implicit warning, saying: “I will not comment on future market trends, but what needs to be pointed out is that we are at the beginning of a long holiday period. We maintain extremely close communication with the United States, and I believe both sides are highly aligned in their judgments of the situation and the actions taken.”