The weakening of the US dollar and intervention risks drive the rise of the Japanese yen According to a report by Golden Finance, the US dollar fell across the board on Monday, while the Japanese yen surged to its highest level in over two months. Speculation about a joint intervention by the US and Japan in the foreign exchange market has intensified following statements from the Japanese Prime Minister and Ministry of Finance officials. Investors have also reduced their US dollar positions ahead of the Federal Reserve meeting and the possibility of Trump announcing a new chairman. The concern about another government shutdown in the United States has also put pressure on the US dollar. The US dollar has fallen nearly 3% against the Japanese yen in the past two trading days, marking the most severe drop since the "Liberation Day" tariff related market turmoil in April last year. A source said that the New York Federal Reserve has inquired about the US dollar/Japanese yen exchange rate with traders, which is seen as a precursor to intervention. Dominic Bunning, head of foreign exchange strategy at Nomura G10, said, "Obviously, if both the Japanese Ministry of Finance and the US Treasury want to limit the upward space of the US dollar against the Japanese yen, this will be a stronger driving force." Goldman Sachs analysts said, "Given that the US may be involved, we believe that the signals of intervention are stronger than in 2022 or 2024, which makes any actual intervention possible to be coordinated." "However, when the broader context proves that the pressure faced by the currency is reasonable, the impact of direct operations is often only temporary (Golden Ten Data APP)