Overview
- Tokyo spent a record roughly ¥11.7 trillion (about $72–$74 billion) on late April–early May FX intervention, but the yen kept sliding to levels around ¥162–163 per dollar.
- A fresh leg of weakness pushed USD/JPY into roughly ¥162.5–163 in late June as rising U.S. Treasury yields widened the U.S.-Japan interest-rate gap and encouraged carry trades that sell yen.
- Traders reported a sudden yen jump on Thursday that they called a possible 'rate check' and Reuters sources say officials are shifting from pre-warning to more targeted, less-telegraphed intervention tactics.
- Friday's much weaker-than-expected U.S. nonfarm payrolls led the dollar to pull back and pushed USD/JPY toward the 160–161 area while options desks bought volatility ahead of thin July 4 liquidity.
- Market strategists warn that persistent yen weakness could steepen Japan's government bond curve, raise long-term yields and trigger cross-asset unwinds that would affect investors and household costs.