The yen surged amid observations of yen-buying foreign exchange intervention and expectations of an accelerated pace of Bank of Japan interest rate hikes, before retreating.

Market Overview for the Week of August 31–September 4 CNY/JPY High: 23.818 JPY Low: 23.138 JPY Close: 23.2834 JPY Week-on-Week Change: -2.19% (Decline) The yen surged before retreating, driven by observations of yen-buying foreign exchange intervention by the Japanese government and the Bank of Japan, as well as expectations of an accelerated pace of BOJ interest rate hikes. As the renminbi is traded based on the reference rate against the U.S. dollar set by the People's Bank of China (the central bank), it moves in tandem with the greenback. Demand for the yen strengthened amid speculation that the Japanese government and the Bank of Japan had intervened in the foreign exchange market to buy yen, alongside expectations that the BOJ would accelerate its interest rate hiking cycle.

Fisco JapanSep 6 06:32

How far can the yen's reversal go? Goldman Sachs: Structural recovery is "just getting started," while Bank of America forecasts a rise to 149 by year-end.

Goldman Sachs assesses that the correction of the yen's long-term structural undervaluation may have only just begun.

wallstreetcnSep 5 14:00

Asia Focus: The Asian Landscape of China’s Outbound Tourism

Key Insights: The recovery of China's outbound tourism exhibits nuanced characteristics, driven by exchange rates, geopolitics, and policy. Since 2023, alongside the simultaneous recovery of domestic travel, China's outbound tourism has significantly rebounded, with international passenger traffic returning to 2019 levels. However, the current recovery is not merely a release of pent-up demand but is profoundly influenced by the appreciation of the renminbi against Asian currencies, geopolitical tensions, and changes in travel policies. Tourism flows to Japan and South Korea have diverged: South Korea benefits, while Japan faces pressure. Despite the cost advantage offered by a weak yen, Japan's appeal to Chinese tourists has been dampened by geopolitical tensions.

CSOPSep 4 18:04

Bolstered by dual expectations of interest rate hikes and intervention, the yen surged for two consecutive days, retesting the 156 level and marking its strongest performance since the joint U.S.-Japan intervention!

After two consecutive days of sharp gains, the yen has returned to around 156, with markets simultaneously pricing in a Bank of Japan rate hike and remaining wary of renewed intervention by Japanese authorities. As meetings of the U.S. and Japanese central banks approach, along with Japan’s extended holiday period, analysts warn that the risk of fresh intervention will rise significantly if the USD/JPY exchange rate revisits the 160 level.

wallstreetcnSep 3 19:25

As Japanese Capital Returns Home: Is the Break of the 3% Threshold in JGB Yields Reshaping Global Capital Flows?

① As Japan’s benchmark 10-year government bond yield breaks through the 3% barrier for the first time in three decades, higher returns are beginning to attract Japanese capital held overseas to flow back home; ② This could reverse the once-stable trend of Japanese capital inflows into global markets...

cls.cnSep 3 10:46

The yen surged suddenly amid renewed rumors of Japanese intervention, prompting a rebound in gold and silver prices.

The yen strengthened sharply on Wednesday, while the U.S. Dollar Index recorded its largest intraday decline since August 21, with spot gold approaching $4,400. Rumors circulated that Japanese authorities had intervened again, but traders viewed the magnitude of the gain as insufficient to confirm intervention.

Golden10 DataSep 2 22:57