Japan intervened in the foreign exchange market to support the yen, which rose as much as 3% during the day, according to traders and local media. The yen rose to 155.57 yen to the dollar, the highest level since late February, but depreciated to around 156.80 yen in New York trading.
The move followed official warnings against excessive currency fluctuations. “Japan intervening to protect the yen is a very bad thing for the market,” analyst Crypto Rover wrote of X. He added: “Yields are at a 27-year high, oil is at $120, and inflation is rising.”
Yen intervention signals policy tension
According to Bloomberg, Japan’s head of the currency bureau, Jun Mimura, warned of potential action ahead of the move, saying “the time for bold measures is approaching.” He also said the warning to traders was “a final recommendation if you want to flee.” Authorities continued to communicate with U.S. officials based on Group of Seven guidelines.
Traders are linking the yen’s surge to Treasury intervention. “This was a wake-up call moment,” Neil Jones said, adding that the ministry was likely to have told the Bank of Japan to act in the Tokyo market.
Strategists said the intervention could have limited impact on broader currency trends. “Yen intervention feels a bit like fighting against the wind,” said Sebastian Boyd. He noted that interest rate differentials continue to support the dollar. Oil prices are still rising, with Brent crude trading above $126 per barrel.
Crypto assets and risk assets react to macro stress
Amid rising macro uncertainty, global markets have become cautious. The market capitalization of cryptocurrencies fell by 0.4% in 24 hours to $2.63 trillion, according to data from CoinMarketCap. Bitcoin’s lead remained close to 58%, while Ethereum’s lead was 10.5%.
Additionally, Bitcoin traded above $76,000 following recent macroeconomic developments. Dogecoin rose 6.88% during the same period. The Cryptocurrency Fear and Greed Index has dropped to 33.
Along with the turmoil in the Strait of Hormuz, geopolitical tensions involving the United States and Iran remained in the spotlight. Treasury yields and oil prices continued to rise, impacting markets across all asset classes.
Related: Bitcoin funding remains negative for 47 days as market pressure mounts
