Japan’s coordinated currency intervention with the United States and South Korea has intensified market expectations that the Bank of Japan may need to raise interest rates more quickly and further, increasing pressure on policymakers ahead of next month’s policy meeting, as per a report by Reuters.
The coordinated yen-buying operation in late July and early August pushed the Japanese currency about 5% higher, although the yen has struggled to sustain those gains. The intervention came after the currency fell to a 40-year low of 163.99 per dollar.
