US Treasury Secretary Scott Bessent inadvertently exposed plans for a $5bn-$10bn Japanese yen purchase during a Camp David cabinet meeting, captured by a Reuters photographer. This revelation coincided with reports of US and Japanese intervention to strengthen the yen, which had recently hit a 1986 low.
Japan's central bank maintains 1.0% interest rate, aligns with market expectations. Yen surges 3.5% after reported intervention, with South Korea joining. BoJ warns of CPI inflation exceeding 2% in 2026's second half.
Bitcoin (BTC) fell towards $58,000 on Tuesday, struggling to keep pace with US stocks' strong Q2 gains. Analysts suggest capitulation among top buyers as BTC faces renewed pressure from a strong dollar against the yen, potentially leading to government intervention.
The Japanese yen weakened to its lowest level against the U.S. dollar since 1986, reaching 162.19 per dollar, prompting Japanese Finance Minister Satsuki Katayama and Chief Cabinet Secretary Minoru Kihara to state readiness for decisive action against excessive currency moves, while Nomura expects any intervention's market impact to be short-lived.
China and Japan significantly reduced their U.S. Treasury holdings in March due to the Middle East war, which caused energy price surges and currency depreciation, forcing central banks to liquidate dollar reserves.
China and Japan significantly reduced their U.S. Treasury holdings in March due to the Middle East war's impact on energy prices and local currencies. Overall foreign holdings fell as central banks liquidated dollar reserves for currency intervention.
Asian markets showed mixed performance on Friday as investors remained cautious amid Iran conflict uncertainty. MSCI's Asia-Pacific index rose 0.3% with a weekly gain of 0.8%, while Japan's Nikkei gained 0.45%. South Korea, China and Hong Kong declined. Oil prices climbed over 1% to $106.21 for Brent, adding to market anxiety. The yen hovered near 160-per-dollar, raising intervention concerns.
