Live Feeds
● LIVE Updated 26d ago · 34 sources tracked

Why Japan's $70 billion-plus intervention and a rate hike didn't prop up the yen more

The Bank of Japan raised interest rates to 1% on June 16, the highest level since 1995. Despite this, the yen remains near 40-year lows, trading around 161.60 to 161.70 per dollar. Market stability currently relies on the threat of government intervention rather than policy shifts.

RSS Source map (27)

What changed

Recent reports specify the new 1% interest rate and the current USD/JPY trading range near 161.70.

Live updates

  1. Intervention Threats Slow Yen Slide as Rate Hike Fails to Shift Trend

    The Bank of Japan raised interest rates to 1% on June 16, the highest level since 1995. Despite this, the yen remains near 40-year lows, trading around 161.60 to 161.70 per dollar. Market stability currently relies on the threat of government intervention rather than policy shifts.

    What's confirmed:

    • On June 16, the Bank of Japan raised interest rates to 1%, the highest level since 1995.
    • The USD/JPY pair is trading near 161.60 to 161.70.
    • The threat of intervention is currently slowing the yen's decline.

    Still unconfirmed:

    • The yen is being held in place by the threat of intervention rather than tighter policy.
    confidence 90%

  2. Japan's $72.8 Billion Intervention Fails to Stabilize Yen

    Finance Minister Satsuki Katayama deployed over 11.7 trillion yen in foreign reserves from April to May to support the currency. The Bank of Japan also increased policy rates. Despite these efforts, the yen remains under pressure.

    What's confirmed:

    • Finance Minister Satsuki Katayama used over 11.7 trillion yen in foreign reserves between April and May to prop up the currency.
    • The total value of the intervention exceeded $72.8 billion.
    confidence 100%

  3. Yen Nears 40-Year Low Despite BOJ Rate Hike and Interventions

    The Japanese yen continues to slide toward a 40-year low, recently passing 161 against the US dollar. This decline persists despite a Bank of Japan interest rate increase and over $70 billion in market interventions. The currency remains volatile as the gap between Japanese and US Federal Reserve policies intensifies.

    What's confirmed:

    • The Bank of Japan raised interest rates to 1%, the highest level since 1995.
    • The yen has slid past 161 against the US dollar.
    • The yen is nearing a 40-year low.
    • Japan deployed more than $70 billion in interventions to support the currency.
    • The Bank of Japan previously raised rates to 0.75% in December.

    Still unconfirmed:

    • Finance Minister Satsuki Katayama is in an unenviable position regarding foreign exchange.
    confidence 90%