The Japanese yen suffered its sharpest sell-off since February, falling as much as 1% to 159 per dollar on Monday and erasing about half of its gains from last week's coordinated US-Japan intervention. The decline comes despite the Bank of Japan raising rates from negative 0.1% in 2024 to 1% today, while the Federal Reserve's funds rate remains at 3.5% to 3.75%. Seth Carpenter, chief global economist at Morgan Stanley, said the intervention does not change the fundamental drivers of the yen, and Claudio Irigoyen of Bank of America warned it raises pressure on the Bank of Japan to hike further if the Fed moves in September.
Bank of America Corp
Morgan Stanley
