The Japanese Yen has remained weak against its major currency peers this week.
The lack of follow-up US-Japan joint intervention pressured the Yen's last week's outperformance.
German Industrial Production rises 0.2% MoM in June, beats 0.1% estimates.
The Japanese Yen (JPY) has underperformed its major currency peers this week due to a lack of follow-up joint intervention by the United States (US) and Japan.
Japanese Yen Price This Week
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies this week. Japanese Yen was the weakest against the US Dollar.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
USD | 0.25% | 0.37% | 0.81% | 0.12% | 0.08% | 0.57% | 0.62% | |
EUR | -0.25% | 0.13% | 0.57% | -0.13% | -0.07% | 0.36% | 0.37% | |
GBP | -0.37% | -0.13% | 0.11% | -0.25% | -0.19% | 0.23% | 0.25% | |
JPY | -0.81% | -0.57% | -0.11% | -0.61% | -0.57% | -0.12% | -0.10% | |
CAD | -0.12% | 0.13% | 0.25% | 0.61% | 0.05% | 0.50% | 0.50% | |
AUD | -0.08% | 0.07% | 0.19% | 0.57% | -0.05% | 0.38% | 0.43% | |
NZD | -0.57% | -0.36% | -0.23% | 0.12% | -0.50% | -0.38% | 0.05% | |
CHF | -0.62% | -0.37% | -0.25% | 0.10% | -0.50% | -0.43% | -0.05% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
Last week, both countries jointly intervened in FX markets to prop up the Japanese currency. Japan's Ministry of Finance (MoF) confirmed that the US and Japan intervened together to “counter excessive volatility and disorderly movements in the Japanese yen in recent months.”
Yen support seen hinging on credible US-Japan intervention backstop
Commerzbank’s Thu Lan Nguyen stressed that the durability of the recent Yen rebound will depend on whether markets remain confident that joint action by policymakers is not a one-off. She argued that “for the yen to retain its gains, markets must be convinced that coordinated interventions by the BoJ and US authorities will remain on the table going forward.” In that context, Nguyen notes that US Treasury Secretary Scott Bessent has already signalled a willingness to keep the option open, having “suggested that the United States would be willing to act again if necessary,” reinforcing the perception of an ongoing US-Japan intervention backstop even as questions persist over the sustainability of such efforts.
Japanese Finance Minister (FM) Satsuki Katayama also said on Monday that Japan “won't hesitate to carry out more forex intervention with the US”.
Meanwhile, the Euro (EUR) trades broadly calm after the release of the better-than-expected German Industrial Production data for June. Destatis reported that overall industrial activity grew 0.2% Month-on-Month (MoM), faster than the 0.1% estimate, but slower than the previous revised reading of 0.7%. On an annualized basis, the data declined by 0.1% after remaining flat in May.
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