London Daily

Focus on the big picture.
Saturday, Sep 12, 2026

Dollar falls against yen, markets suspect intervention

Dollar falls against yen, markets suspect intervention

The battered yen jumped against the dollar on Friday, triggering speculation that Japanese authorities may be in the market to stem a slide in their currency.

The yen rose as high 144.80 per dollar in late morning U.S. trade, up about seven yen from a 32-year peak of 151.94 yen. Dollar/yen was last down about 1.5% at 147.95.


COMMENTS


MAZEN ISSA, SENIOR FX STRATEGIST, TD SECURITIES, NEW YORK

"It’s very clearly the Ministry of Finance stepping in to sell dollar-yen.

"It seems like, actually, just looking at the evolution of some of the portfolios … these are the sorts of assets they have on their balance sheet, you know, the securities portion of that balance sheet had been declining a lot and that is really Treasuries, so, given some of the price action in fixed income markets this week, particularly in the U.S. curve would be indicative that they are likely selling Treasuries to help fund any intervention."

"They are trying to staunchly defend their very easy policy.

"It’s long been understood and a lot of historical evidence to suggest this is the case, that fx intervention is a temporary fix and it is not sustainable."

"I would say today’s move has been uniquely timed in that it followed the Wall Street Journal article about any sort of calibration risks."

"And then two, a lot of folks had been looking at 150 as a key level that they would see some kind of intervention, and they let it run through to basically 152 and then the timing of their intervention happened at a very illiquid time, basically, as London was about to head home for the weekend, and it seems like it is designed to inflict as much pain as possible on, they like to use the term, speculators. So, we saw the finance minister I think last night talk about strictly talking about speculators. And so, I would say a week before the Bank of Japan meeting I think it’s indicative that they want to continue to defend that policy, but I think their timing is designed to do as much damage as possible to those trying to take top-side bets on dollar-yen."

COLIN ASHER, SENIOR ECONOMIST, MIZUHO, LONDON


"The price action certainly makes it appear like intervention. If it is intervention it is well timed after the Wall Street Journal article knocked the stuffing out of the ever upward rise in U.S. Treasury yields."

KARL SCHAMOTTA, CHIEF MARKET STRATEGIST, CORPAY, TORONTO


"It looks like the Ministry of Finance is intervening here. We are seeing lots of dollar selling and the yen moving almost vertically as shorts get squeezed."

"We are hearing large blocks are being traded. That typically means either larger institutions are moving money or that a central bank is intervening in size. The clearest evidence is just the scale of dollar selling that is happening."

Newsletter

Related Articles

0:00
0:00
Close
Chinese Crypto Entrepreneur Leon Li Identified as Seller of £190 Million London Mansion
Trades Union Congress Proposes Social Energy Tariff Funded by Higher Bank Surcharge
British Chambers of Commerce Calls for State Pension Triple Lock to Be Scrapped
Anthropic Says Claude Helped Disrupt Biological Weapons and Cyber Espionage Threats
UK Imposes Sanctions Over Israeli Settlements and West Bank Violence
UK Reimposes Sectoral Sanctions on Iran’s Aviation, Shipping and Energy Networks
UK Economy Grows 0.4% in July as AI and Programming Services Lift Activity
UK House of Commons Rejects Assisted Dying Bill by 286 Votes to 270
UK Reviews Nationwide Emergency Alert Tests After Systems Meet Reliability Targets
UK Seeks Faster Rail Links Across Northern Industrial Corridors
British Business Bank Allocates £150 Million for High-Growth Companies in Northern England
BBC Warns Staff Strikes Are Possible Amid Pay Dispute and £500 Million Savings Drive
UK Backs Short Extension of UN Sudan Sanctions Regime
Prime Minister Andy Burnham Defends Early Prison Release Reforms and Growth Strategy
Reform UK Faces Scrutiny Over Alleged Effort to Circumvent Foreign Donation Rules
UK Analysts Warn Tax Rises or Spending Cuts May Be Needed to Preserve Fiscal Headroom
Jaguar Land Rover Plans Up to 4,000 Job Cuts in £1.7 Billion Cost-Saving Drive
UK Chancellor Warns of Difficult October Budget as Borrowing Costs Rise
UK Declares Israeli Occupation of West Bank Unlawful and Expands Sanctions
UK House of Commons Rejects Assisted Dying Bill for England and Wales
English Councils to Gain Power to Introduce Tourist Taxes by 2028
Kemi Badenoch Reshuffles Conservative Shadow Cabinet
Firefighters Make Progress Containing Major Wildfires in South Wales
John Lewis Partnership Reports £124 Million Loss
Study Says UK AI Data Centres Will Create Only a Quarter of Forecast Jobs
UK Government Considers Higher Industrial Water Prices Amid Supply Pressures
Andy Burnham Holds First Call With Donald Trump as UK Prime Minister
NHS Records Busiest Summer on Record as Heatwaves Drive Hospital Admissions
Home Secretary Orders Police Crackdown on Far-Right Anti-Migrant Vigilantes
UK Supreme Court Rules Northern Ireland Religious Education Curriculum Breaches Human Rights Standards
Markets Price in Four Bank of England Rate Rises by Next Summer
House of Commons Prepares Free Vote on Assisted Dying Bill
UK Government Bans Trade With Israeli Settlements in Occupied Territories
UK Economy Grows 0.4% in July as Artificial Intelligence Investment Supports Expansion
Andy Burnham Becomes UK Prime Minister After Keir Starmer Resigns
John Lewis Partnership Loss Widens to £124 Million
UK Government to Put White Working-Class Social Mobility at Centre of Equality Policy
McLaren Plans £450 Million Technology Investment Creating 1,000 UK Jobs
UK Chancellor Faces Calls for Wealth Taxes and Public Ownership in Autumn Budget
English Mayors to Gain Powers to Impose Uncapped Overnight Tourist Taxes
JPMorgan’s Jamie Dimon Warns UK Government Against Bank Windfall Taxes
UK Air Traffic Control Outage Cancels More Than 2,000 Flights
UK Imposes Trade Ban on Israeli Settlements in the West Bank
UK Borrowing Costs Surge as Middle East Tensions Push Long-Term Gilt Yields to Highest Since 1998
Buckingham Palace Says Prince Harry and Meghan Will Not Resume Official Royal Duties
UK Treasury Faces Calls to Scrap £100,000 Childcare Support Threshold
Trades Union Congress Urges Labour Government to Rewrite Migration Policy
Riot Police Deployed After Anti-Migrant Protests Turn Violent in Portsmouth
UK Considers Replacing Some Disability Cash Payments With Direct Services
JPMorgan’s Jamie Dimon Warns UK Chancellor Against Higher Banking Taxes
×