Japan's Prime Minister Sanae Takaichi says her government's policies will strengthen the yen through economic growth and supply-side investment, rather than currency manipulation. Previous U.S.-Japan intervention efforts had limited success, though joint action and Bank of Japan rate hikes helped the yen gain 3.3% in Q3. Analysts warn that sustained yen recovery requires domestic policy changes beyond intervention alone.
The Japanese yen weakened past 158 per dollar after traders reduced expectations for a Bank of Japan rate hike in October, keeping yen carry trades attractive but risking another sudden reversal that could impact Bitcoin and crypto markets, similar to the August 2024 unwind.