#CurrencyMarketS

Every few trading sessions, the yen jolts higher against the dollar, and then it suddenly drops.

Japan’s foreign currency reserves at the end of April were largely unchanged from the previous month, likely an indication that currency intervention came too close to the end of the month to be reflected in the data.

Investors headed into Monday on edge as Trump’s rejection of Iran’s ceasefire proposal fueled concerns about a prolonged Middle East conflict.

The Federal Reserve’s custody holdings of Treasuries fell for the first time in a month at a time Japan was likely intervening to support its currency, with markets debating whether the nation offloaded US securities to fund its yen purchases.

Asia-Pacific markets open lower Friday, as concerns grew over renewed hostilities between Iran and the U.S. amid a fragile ceasefire.

From CNBC: Japan may have fired its yen bazooka twice, but markets are testing Tokyo’s resolve

The yen’s failure to breach 155 to the dollar after repeated cases of suspected intervention by Japan is raising questions over the durability of the currency’s recent advance.

From Bloomberg: Earnings Beats Offer India Markets a Silver Lining Amid Oil Shock

South Korea’s largest pension fund removed its cap on currency hedging last month, allowing it to exercise more heft in the foreign exchange market at a time of won weakness.

Asia markets were set to open mixed Monday as investors assess news of President Donald Trump's plan to "free" ships stranded in the Strait of Hormuz.

Japanese Finance Minister Satsuki Katayama declined to comment if authorities intervened to support the yen last week, after reports said they had entered the market for the first time since 2024.

“FX intervention will only get them so far,” one strategist said after the yen surged.

The correlation between dollar-yen and Brent crude rose to its highest level since late 2021 a day before Japanese authorities intervened in the currency market, underscoring the tighter link between oil prices and the yen.