Nikkei Falls 2.2% as Coordinated Japan-US Yen Buying Lifts Currency to 155.20
Updated
Updated · Finimize · Aug 3
Nikkei Falls 2.2% as Coordinated Japan-US Yen Buying Lifts Currency to 155.20
2 articles · Updated · Finimize · Aug 3
Summary
Japan’s Nikkei dropped 2.2% after Tokyo and Washington confirmed rare coordinated yen-buying intervention late last week, sending the yen up as much as 1.4%.
USD/JPY hit 155.20, extending the yen’s gain to 3.8% over two sessions, as Japan’s finance ministry said it would not hesitate to intervene again.
Transport equipment stocks led the selloff because a stronger yen cuts the value of overseas earnings; Toyota fell 5.3% and Suzuki about 8%.
That policy signal also raised expectations of further intervention, increasing currency volatility and making earnings forecasts and hedging harder for Japan’s exporter-heavy market.