The US dollar weakens, while the Japanese yen rises to a two month high

The US dollar fell across the board on Monday, while the Japanese yen rose to its highest level in over two months. After the speeches of the Japanese Prime Minister and officials from the Ministry of Finance, speculation about a joint intervention by the United States and Japan in the foreign exchange market has heated up. Investors are reducing their US dollar positions ahead of the Federal Reserve meeting and the possibility of Trump announcing a new chairman. The US dollar fell nearly 3% against the Japanese yen in two days, marking the largest decline since April last year. It is reported that the New York Federal Reserve has inquired about the US dollar/Japanese yen exchange rate from traders, which is seen as a precursor to intervention. The head of foreign exchange strategy at Nomura G10 stated that if the United States and Japan jointly restrict the upward movement of the US dollar against the Japanese yen, it will have a greater impact. Goldman Sachs analysts believe that the United States may be involved in intervention, with signals stronger than in 2022 or 2024, but the direct operational impact may only be temporary.