Japan Faces Yen Intervention Watch as Hawkish Fed Drives Currency to Prior Trigger Levels
Updated
Updated · Bloomberg · Jun 18
Japan Faces Yen Intervention Watch as Hawkish Fed Drives Currency to Prior Trigger Levels
3 articles · Updated · Bloomberg · Jun 18
Summary
Strategists say markets are now on intervention watch after the yen fell to levels that previously drew action from Japan’s finance ministry.
The drop followed a hawkish Federal Reserve stance at Kevin Warsh’s debut meeting as governor, which pushed US yields higher and strengthened pressure on the yen.
Higher US yields are also weighing on Asian currencies more broadly and making it harder for regional central banks to cut rates without risking further weakness.
Tech shares in Asia are poised to fall in step with US peers as investors price in an earlier-than-expected rate hike.