Yen

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Global FX speculators shift to a net long position on the Japanese yen for the first time since February, driven by expected BoJ rate hikes and rising bond yields.

The dollar is strengthening in the local market, rising by 0.3% to trade at 3.03 shekels, contrary to the global trend of the American currency. Investors are awaiting the upcoming US employment report.

The Japanese currency is strengthening sharply as statements from the Bank of Japan and American support increase market bets on a shift in monetary policy.

US Treasury Secretary Scott Bessent warns that the collapse of the Japanese currency threatens global markets. In an official letter, he reveals why Washington was forced to intervene in a rare move.

Japan spent 15.4 trillion yen ($96.4 billion) on foreign exchange interventions between July 30 and August 26. This record monthly expenditure reflects the government's determination to curb the yen's depreciation.

Washington and Tokyo carried out their first joint intervention in the foreign exchange market in years. The move involved selling euros and buying yen, an unusual step intended to support the Japanese currency without weakening the dollar.

The US administration is purchasing yen in the amount of 5–10 billion dollars as the Japanese currency hits 40-year lows. Beyond supporting an ally, the intervention offers a direct benefit to Washington: it may reduce Japan's sale of US bonds, thereby lowering the cost of servicing American debt.

Minor movements in the local foreign exchange market at the start of August following a 3.2% depreciation of the shekel in July. The dollar is trading at 3.05 shekels, while the euro is around 3.52 shekels.

Following Donald Trump's announcement to cancel an attack on Iran, oil prices fell by over 5%. Asian stock markets are experiencing a negative trend, while the Japanese yen has strengthened following a coordinated intervention by Tokyo and Washington.

They haven't done it since 2011, but now Japan and the US are forced to cooperate and inject tens of billions into the currency market to stop the extreme deterioration that threatens the markets.

The US and Japan took coordinated action to support the yen, strengthening the Japanese currency by over 1%. This marks the first joint intervention by Washington and Tokyo in nearly 30 years.

The yen's surge has reignited assessments that authorities in Japan entered the foreign exchange market to curb the currency's weakening. The Bank of Japan is expected to publish its interest rate decision tomorrow, with expectations of no change.