Market Hunts for Signs of Japan Yen Intervention in Fed Accounts

-- Fresh data on the Federal Reserve’s various accounts hints at two potential ways Japanese policy makers may have funded currency interventions this past week to bolster the beleaguered yen.One source may have been a Fed facility where central banks stash overnight cash to earn a market rate. The amount held in this pool — the Fed’s foreign reverse repurchase agreement facility — as of May 1 was down about $8 billion from a week earlier, to $360 billion, figures from the central bank show.

“They hid the intervention well,” said Gennadiy Goldberg, head of US interest rates strategy at TD Securities. “They must have prepared for it in advance by not rolling something and keeping lots of money in cash.”On Monday, a holiday in Japan, the yen fell to a fresh 34-year low of 160.17 per dollar before sharply rebounding in thin trading. On Wednesday following the conclusion of the Fed’s two-day policy meeting, the yen abruptly rallied more than 3% in the waning hours of the US trading day.

However, Japanese officials didn’t tap that Fed facility in a previous round of currency intervention in 2022, and most of the cash has been untouched for a decade, Citigroup Inc. strategists wrote in a note last month. As a result, they expected some sales of front-end Treasury bills or coupons if an intervention occurred.AI Is Helping Automate One of the World’s Most Gruesome Jobs

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock market today: Asia stocks rise with market focus on signs of interest rate cutHONG KONG (AP) — Asia stocks were mostly higher on Tuesday, with investors mainly focusing on a U.S. inflation report and what it means for interest rate...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stock market today: Japan’s Nikkei leads Asian market retreat as Middle East tensions flareHONG KONG (AP) — Asian stocks tumbled Friday, with Japan’s Nikkei slumping 2.4% on heavy selling of semiconductor-related shares and other market...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

The Gold Market Hunts for Answers Behind Bullion’s Sudden Surge(Bloomberg) -- Gold’s scorching run to an all-time high may seem easy to explain from a distance, given the fractious geopolitical climate and murky outlook ...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

The Gold Market Hunts for Answers Behind Bullion’s Sudden SurgeGold’s scorching run to an all-time high may seem easy to explain from a distance, given the fractious geopolitical climate and murky outlook for the global economy.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Oil price news: Oil heads for weekly gain on signs of firmer market before dataOil headed for a weekly gain on signs of tightening supplies before the release of U.S. inflation data that may give further clues on the path forward for monetary policy.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Whales Accumulate as Market Crashes: BOME Shows Signs of RecoveryLast week's market crash led to bearish sentiment in the crypto market, but whales took advantage of the situation to accumulate. BOME, despite a recent spike in price, still faces dominant bearish sentiment.
Source: CryptoAmb - 🏆 22. / 68 Read more »