ING's Chris Turner Flags Rare Joint US-Japan FX Intervention
ING analyst Chris Turner highlights a rare joint US-Japan foreign exchange intervention, with Washington participating via the Fed and Japan tapping the FIMA repo facility to raise dollars.
The Japanese yen is under the spotlight after ING’s Chris Turner noted an unusual coordinated FX intervention between the US and Japan. The operation is viewed as a containment measure, designed to manage yen volatility.
According to Turner, the United States is involved through the Federal Reserve, while Japan is leveraging the Foreign and International Monetary Authorities (FIMA) repo facility to secure dollar liquidity. This facility allows central banks to temporarily exchange their US Treasury holdings for cash.
The intervention underscores the heightened sensitivity around yen moves and the willingness of authorities to act jointly when needed.
Source: FXStreet Forex News