[Yen Exchange Rate Plummets, Intervention Discussions May Trigger U.S. Stock Market Volatility] Jinshi Data, June 30 – For a long time, investors have borrowed yen at low costs and allocated the funds into higher-yielding markets, a strategy known as 'yen carry trade.' This practice has continuously driven capital from Asia into various global risk assets, including U.S. stocks and commodities. The recent depreciation of the yen warrants close attention, especially as the market approaches the two-year anniversary of Japan's large-scale intervention in the yen exchange rate in August 2024. That intervention not only caused the largest single-day drop in Japan's stock market since 1987 but also intensified volatility in U.S. markets, leading the S&P 500 Index to plunge 6.1% within three days. Chris Turner, Global Head of Markets at ING, believes that due to thin trading caused by the July 4 holiday, Japan may initiate a new round of yen-buying actions on Friday or wait until before Japan's next holiday, 'Marine Day,' on July 20 to act.