Probability of U.S.-Japan Currency Intervention Rises, Expert Says

On January 26, Masahiko Loo, a senior fixed income strategist at State Street Global Advisors, indicated that the likelihood of a joint U.S.-Japan intervention in currency rates has significantly increased. According to BlockBeats, Loo highlighted the importance of Friday's interest rate check report, noting that historically, such checks by the Ministry of Finance have been precursors to action. He warned that if no subsequent measures are taken, speculative pressure could intensify as the market tests the authorities' resolve by further weakening the yen. Regardless of timing, Loo emphasized that the market's 'bottom line' is clear: 162, the level at which the last intervention occurred.