The dollar reached 158.93 yen on Monday, its highest level this month, already recovering about a quarter of the decline caused by the historic intervention of nearly $88 billion deployed by Japan in late July with US support. Tokyo spent approximately $53 billion on July 30 and $34 billion the following day, while Washington spent between $5 and $10 billion in its first coordinated yen purchase since 1998. Japan’s current account posted a deficit of 92.3 billion yen in June, its first in 17 months, fueling doubts about the currency defense’s sustainability. The 10-year Japanese bond yield climbed to 2.807%, near multi-year highs, as Japan’s public debt exceeds 200% of GDP, creating mounting pressure on life insurers sitting on approximately $96 billion in unrealized losses. Bitcoin, which had dropped to around $63,000 during the rescue, remains under pressure as traders anticipate a possible Bank of Japan rate hike in September.
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