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๐จ JUST IN: U.S. RULES OUT YEN INTERVENTION โ FX MARKETS ON EDGE ๐บ๐ธโก๏ธ
The U.S. has drawn a clear line. Treasury Secretary Scott Bessent confirmed that Washington will not participate in any coordinated action to prop up the Japanese yen. Translation: no joint FX intervention, no emergency backstop โ even as currency volatility heats up.
Markets didnโt see this coming. Many traders were positioned for U.S.โJapan coordination to stabilize the yen amid dollar weakness and turbulent capital flows. Instead, the signal from the Treasury is unmistakable: hands off the FX market, for now.
Why this is a big deal ๐
Currency interventions are rare โ and when they happen, theyโre usually coordinated to calm markets. By stepping aside, the U.S. is effectively allowing the dollarโyen pair to find its own level, risks and all. That could ripple through forex, trade dynamics, and global risk sentiment.
Whatโs next?
All eyes turn to Tokyo. With U.S. support off the table, the pressure is on Japan to decide whether to act alone. One thingโs certain: when intervention is ruled out, volatility tends to show up fast. ๐๐๐ฅ
