Dollar Weakens on Yen Intervention

2026-08-03 01:22 By Jam Kaimo Samonte 1 min. read

The dollar index fell toward 99.5 on Monday, extending its decline to a fifth consecutive session after Japan confirmed it had carried out coordinated yen-buying operations with the US, while Bank of Japan data indicated the country may have spent as much as $58.97 billion on Thursday.

Japanese authorities also warned they stand ready to conduct additional coordinated interventions if necessary, noting they remain in close contact with their US counterparts.

In the US, investors are turning their attention to a full slate of labor market data this week, highlighted by Friday's closely watched monthly jobs report.

Last week, the Federal Reserve left interest rates unchanged, although three officials dissented, warning that waiting too long to act could eventually require more aggressive policy tightening.

Markets are currently pricing in about a 68% chance of a 25 basis point Fed rate hike in September.



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Dollar Weakens on Yen Intervention
The dollar index fell toward 99.5 on Monday, extending its decline to a fifth consecutive session after Japan confirmed it had carried out coordinated yen-buying operations with the US, while Bank of Japan data indicated the country may have spent as much as $58.97 billion on Thursday. Japanese authorities also warned they stand ready to conduct additional coordinated interventions if necessary, noting they remain in close contact with their US counterparts. In the US, investors are turning their attention to a full slate of labor market data this week, highlighted by Friday's closely watched monthly jobs report. Last week, the Federal Reserve left interest rates unchanged, although three officials dissented, warning that waiting too long to act could eventually require more aggressive policy tightening. Markets are currently pricing in about a 68% chance of a 25 basis point Fed rate hike in September.
2026-08-03
Dollar Suffers Biggest Weekly Loss in Three Months
The dollar index rebounded to 100.3 on Friday but remained down nearly 1.5% for the week, marking its worst weekly performance in three months and bringing its monthly decline to 1.3%. The greenback came under pressure as investors questioned whether the Federal Reserve is doing enough to bring inflation back to target. The Fed left the federal funds rate unchanged for a fifth consecutive meeting this week. While Chair Warsh reiterated the central bank's commitment to restoring price stability, he offered little guidance on the policy outlook for the remainder of the year. As a result, expectations for a rate hike at the September meeting eased, although markets continue to price in roughly a two-thirds probability of a 25bps increase.
2026-07-31
Dollar Heads for Sharp Weekly Loss
The dollar index traded near 100 on Friday after sliding for three straight sessions and was on track to decline more than 1% for the week, pressured by the Federal Reserve’s cautious policy stance and a suspected Japanese currency intervention to support the yen. The greenback tumbled as much as 3.3% against the yen on Thursday as Tokyo was believed to have stepped into the foreign exchange market once again, while US Treasury Secretary Scott Bessent said the yen is “very undervalued” and argued that excessive currency volatility is unhealthy. Meanwhile, the Fed kept interest rates unchanged this week despite mounting inflationary risks stemming from renewed hostilities in the Middle East, although three FOMC members voted in favor of a rate hike. Markets are still pricing in about a 63% chance of a 25-basis-point Fed rate hike in September.
2026-07-31