One week after the coordinated U.S.-Japan intervention to support the yen, the initial rally is fading as the currency drifts lower. The joint Treasury and BoJ involvement initially lifted the yen as high as 155 to the dollar, down from just above 163 beforehand, but it has since given up almost half those gains to settle around 158.50 to the dollar. Market watchers are now turning their attention to domestic policy changes rather than government-backed support measures. Robert Sockin, chief U.S. economist at PGIM, remains skeptical about the strategy’s long-term effectiveness and warns of a potential spectacular reversal. Treasury Secretary Scott Bessent acknowledged that intervention alone would not determine the currency’s direction, noting the U.S. participated because it was optimistic about Japan’s policy path.
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