America Helped Save the Yen, The Market Just Took It Back, and Bitcoin Is Exposed
USD/JPY climbed to 158.93 on Monday, its highest level this month. Just 10 days ago, Japan's nearly $88 billion yen intervention had dragged the pair down from 164.
The yen is once again August's weakest major currency. The fight may now be moving to Japan's bond market, where 10-year yields sit near multi-year highs.
The $88 Billion Yen Intervention Is Already Fading
Japan's Ministry of Finance bought yen on July 30 and 31, working through the Bank of Japan (BOJ). BOJ account data suggest the first day cost about ¥8.45 trillion, or $53 billion. That ranks among the largest single-day yen purchases ever.
A second round the next day added roughly $34 billion. Together, the two days cost Tokyo close to $88 billion. That came on top of an estimated ¥11.7 trillion spring campaign whose effect faded within weeks.
The United States then joined in, its first coordinated yen purchase since 1998. Washington sold euros for yen through the New York Fed. European officials reportedly learned of it only afterward.
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