Interventions Have Limited Impact on Shoring Up Yen -- Market Talk

1238 GMT - Concerns over Japan's fiscal outlook, uneven economic performance and wide interest-rate differential with the U.S. are keeping the yen weak despite efforts to support the currency, Validus Risk Management's Harun Thilak says in a note. These forces continue to test the effectiveness of direct currency interventions and the Bank of Japan's gradual approach to monetary policy tightening, he says. "While Japanese authorities retain tools to manage excessive volatility, a sustained recovery in the yen is likely to depend on a narrowing of the interest-rate differential between Japan and the U.S., stronger domestic growth and greater confidence in Japan's fiscal outlook." The dollar rises 0.6% to 160.38 yen after falling to an 11-week low of 157.96 Thursday following suspected interventions. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

July 31, 2026 08:38 ET (12:38 GMT)