Section
The latest forex coverage from the TrustFinance editorial desk.
According to a report from BCA Research, the Japanese yen's fall to its lowest levels in nearly four decades is a result of the Bank of Japan's highly accommodative monetary policy amid an overheating economy, not fears over public finances.
The U.S. Treasury has reportedly intervened in foreign exchange markets by purchasing yen, joining Japanese authorities in a significant coordinated effort to support the currency from near 40-year lows.
A Reuters photograph taken during a cabinet meeting appears to show U.S. Treasury Secretary Scott Bessent's handwritten note to buy $5-10 billion worth of Japanese yen, coinciding with a sharp strengthening of the currency.
India's foreign exchange reserves increased by $6.1 billion in a week to reach $682.3 billion as of July 24, a two-month peak, bolstered by a successful foreign-currency deposit program.
U.S. Treasury Secretary Scott Bessent publicly commended the Bank of Japan's commitment to stability, a day after the central bank was reported to have intervened in currency markets to support the yen.
The U.S. Treasury has reportedly informed several banks to 'stand ready' for a potential intervention to support the yen, a day after Japanese authorities took similar action to prop up the currency.
The Japanese yen strengthened sharply against the U.S. dollar on Friday, fueled by market speculation of further official intervention a day after authorities confirmed buying the currency for the first time in three months.
Bank of Japan money market data indicates a potential 8.2 trillion yen ($58.97 billion) intervention to support the nation's weakening currency. The figure, derived from an unexpectedly large fund outflow, suggests a major effort by Japanese authorities.
The British pound fell against a stabilizing U.S. dollar on Friday, as the greenback recovered some ground following a sharp sell-off driven by a dovish Federal Reserve outlook and weak U.S. economic data.
