Politics May Be Behind Coordinated U.S.-Japan Intervention in Yen -- Market Talk

0224 GMT - Politics may be behind coordinated U.S.-Japan intervention in the yen, State Street Investment Management's Masahiko Loo says in an email. "Recent reports of coordinated intervention suggest the U.S. may be more willing to lean against disorderly yen weakness than markets previously assumed, to prevent unnecessary stress in funding markets," the senior fixed-income strategist says. The "AI investment boom is creating enormous funding needs, with Big Tech increasingly deploying cash into capex rather than recycling it into Treasuries," Loo adds. The dollar is 0.7% lower at 156.48 yen, LSEG data show. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

August 02, 2026 22:24 ET (02:24 GMT)