South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Japan’s Finance Minister Satsuki Katayama issued the strongest warning yet about the yen’s rapid decline, signaling that currency intervention is a real option if volatility continues. Katayama said recent sharp and one-sided movements in the yen are cause for concern, stressing that exchange rates should move in line with economic fundamentals. He noted that Japan will take “appropriate action” as needed to prevent excessive volatility, in line with the U.S.-Japan agreement signed in September, which allows intervention only to counter disorderly market movements.
When asked directly whether Japan could step into the market, Katayama confirmed that intervention is included as an option in the agreement. Following his remarks, the dollar slipped 0.14% to 157.26 yen in Asian trading, reflecting growing market caution.
The yen’s persistent weakness has become a major challenge for Japanese policymakers, as it raises import costs and increases pressure on households already dealing with higher living expenses. Despite rising Japanese government bond yields, the currency has fallen roughly 6% since Prime Minister Sanae Takaichi took office, partly due to market concerns over the significant borrowing required for her stimulus plans.
Japan last intervened in July 2024, after the yen fell to a nearly four-decade low of around 161.96 per dollar. Before acting then, authorities issued strong warnings that they were prepared for “decisive action.” Analysts believe the government may follow a similar approach this time.
Akira Moroga of Aozora Bank said intervention may occur if the dollar climbs closer to 160 yen, noting that officials appear ready to move quickly if necessary. Hirofumi Suzuki of SMBC echoed this view, saying monetary authorities are unlikely to hesitate if volatility becomes excessive.
As market pressure builds, traders are increasingly watching the 160-yen level as the next critical test and a potential trigger for Japan to take direct action.
