Particle.news
Download on the App Store
8 ARTICLES
·
2h ago

Fed Minutes Confirm Dollar–Yen ‘Rate Check’ as Dollar Rallies and Yen Softens

Firm U.S. data together with higher yields reinforced a hawkish market read of the release.

The exterior of the Federal Reserve Board building is seen in Washington, D.C., U.S., June 14, 2022. REUTERS/Sarah Silbiger/File Photo
U.S. dollar banknotes are seen in this illustration taken March 10, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
U.S. Treasury Secretary Scott Bessent and President Donald Trump.
Image

Overview

  • The latest minutes show policymakers are not rushing to cut rates, with several indicating hikes remain possible if inflation proves persistent.
  • The Fed said its New York trading desk requested dollar–yen quotes solely for the U.S. Treasury, a step markets often treat as a pre-intervention signal.
  • A source cited by Kyodo dated the check to Jan. 23, and reports around that time coincided with a swift yen rebound.
  • Officials reported no formal intervention: U.S. Treasury Secretary Scott Bessent denied action, and Japan’s finance ministry recorded none through Jan. 28.
  • The dollar strengthened as Treasury yields rose, and the yen eased to roughly ¥154.8 per dollar in early Asian trading.