Yen's Post-Intervention Rebound Short-Lived, 2024 Scenario May Repeat
The Japanese Yen's rebound against the US Dollar after government intervention is showing signs of quickly fading, raising the likelihood of further intervention to defend the currency. This mirrors the pattern seen in 2024 where the Yen depreciated after interventions, driven by interest rate differentials between the Bank of Japan and the US Federal Reserve.
📋 Article Processing Timeline
- 📰 Published: May 1, 2026 at 19:35
- 🔍 Collected: May 1, 2026 at 20:01 (25 min after Published)
- 🤖 AI Analyzed: May 1, 2026 at 21:31 (1h 30m after Collected)
Central News Agency
(Central News Agency, Tokyo, May 1st, comprehensive foreign report) The Japanese Yen's exchange rate against the US Dollar, after a surge driven by authorities' intervention, is now showing signs of rapidly fading. This increases the probability that Japan will have to intervene again to defend its currency.
Bloomberg News reported that after the Yen surged 3% yesterday, it resumed a slight depreciation in the Tokyo market this morning. Before the authorities' intervention, the Yen had depreciated past 160 Yen to the Dollar. The selling pressure came from both the Bank of Japan and the US Federal Reserve maintaining unchanged interest rates this week, with the interest rate differential strengthening the Dollar.
The Yen briefly surged to 155.57 against one US Dollar yesterday, reaching its highest level since late February; by 11:52 AM Tokyo time today, it had depreciated back to 157.31 Yen.
At the same time, Brent crude and West Texas Intermediate crude futures prices both fell, so it is currently unclear whether the Yen's depreciation is related to this or due to government intervention. Japanese officials have repeatedly pointed to speculative operations in the oil futures market as one of the reasons for the recent Yen weakness.
Japan's top currency official, Vice Minister of Finance for International Affairs Atsushi Mimura, declined to confirm whether there was intervention in the foreign exchange market. However, one informed source stated that Japanese authorities did intervene. Another informed source revealed that Japan notified US economic officials before taking action.
However, in 2024, the Yen also experienced a scenario where it appreciated after intervention but then gave back those gains, forcing Japanese authorities to intervene multiple times to counter the Yen's weakness.
As Japan enters its Golden Week holiday, lasting until May 6th, Mimura issued an implicit warning about intervention to foreign exchange traders today. He said: 'I will not comment on future developments, but... we maintain extremely close contact with the United States, and I believe we have a consensus on the assessment of the situation and our respective actions.'
Mimura also specifically stated to energy traders: 'Generally speaking, regarding the factors of crude oil futures trading, we are always ready to take action (in response).' (Compiled by: Chang Cheng-chien) 1150501
Stand with the facts, every sponsorship you make is a force to protect press freedom.
Download the Central News Agency 'First-hand News' APP to stay updated with the latest news.
Text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.
(Central News Agency, Tokyo, May 1st, comprehensive foreign report) The Japanese Yen's exchange rate against the US Dollar, after a surge driven by authorities' intervention, is now showing signs of rapidly fading. This increases the probability that Japan will have to intervene again to defend its currency.
Bloomberg News reported that after the Yen surged 3% yesterday, it resumed a slight depreciation in the Tokyo market this morning. Before the authorities' intervention, the Yen had depreciated past 160 Yen to the Dollar. The selling pressure came from both the Bank of Japan and the US Federal Reserve maintaining unchanged interest rates this week, with the interest rate differential strengthening the Dollar.
The Yen briefly surged to 155.57 against one US Dollar yesterday, reaching its highest level since late February; by 11:52 AM Tokyo time today, it had depreciated back to 157.31 Yen.
At the same time, Brent crude and West Texas Intermediate crude futures prices both fell, so it is currently unclear whether the Yen's depreciation is related to this or due to government intervention. Japanese officials have repeatedly pointed to speculative operations in the oil futures market as one of the reasons for the recent Yen weakness.
Japan's top currency official, Vice Minister of Finance for International Affairs Atsushi Mimura, declined to confirm whether there was intervention in the foreign exchange market. However, one informed source stated that Japanese authorities did intervene. Another informed source revealed that Japan notified US economic officials before taking action.
However, in 2024, the Yen also experienced a scenario where it appreciated after intervention but then gave back those gains, forcing Japanese authorities to intervene multiple times to counter the Yen's weakness.
As Japan enters its Golden Week holiday, lasting until May 6th, Mimura issued an implicit warning about intervention to foreign exchange traders today. He said: 'I will not comment on future developments, but... we maintain extremely close contact with the United States, and I believe we have a consensus on the assessment of the situation and our respective actions.'
Mimura also specifically stated to energy traders: 'Generally speaking, regarding the factors of crude oil futures trading, we are always ready to take action (in response).' (Compiled by: Chang Cheng-chien) 1150501
Stand with the facts, every sponsorship you make is a force to protect press freedom.
Download the Central News Agency 'First-hand News' APP to stay updated with the latest news.
Text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.