2025-11-04 02:18:00
Goldman Sachs said Japan faces little immediate risk of currency intervention despite the yen’s recent slide toward ¥155 per dollar, arguing that traditional triggers for action “have not yet been met.”
Info via Bloomberg report.
Strategist Karen Reichgott Fishman wrote that the yen does not appear to be at particularly weak levels, with recent depreciation driven mainly by a repricing of Japan’s fiscal risk premium and shifting Bank of Japan policy expectations, rather than speculative excess.
She noted that the Finance Ministry still holds about $270 billion available for intervention — enough to match the scale of operations seen in 2022 and 2024 — but said officials are unlikely to act unless volatility spikes or market moves become disorderly.
Fishman added that the yen could weaken further if U.S. data disruptions or an early-election focus shift sentiment away from Japan, but over the medium term, Goldman expects gradual yen appreciation as hedging costs fall and the U.S. dollar softens. However, stronger-than-expected Japanese fiscal stimulus or renewed U.S. growth outperformance could delay that recovery.
