Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. The Yen is stubborn and unyielding to any kind of intervention, no matter how historic or momentous.
Japan and the U.S. spent billions in late July on their first joint yen-buying operation since 1998. Two weeks later, the currency has already erased roughly half those gains, trading near 159 to the dollar. The Yen is a case study in how far coordinated intervention can go when it doesn't address the underlying forces driving a currency down.
Japan's finance ministry spent an estimated $74 billion in late April to bolster the Yen, and then another $59 billion to buy more Yen on July 30, when the currency was trading near 40-year lows around ¥163.73. Treasury Secretary Scott Bessent sent a DM to banks asking them to buy Yen worth $5-10 billion. The New York Fed acted fast by selling euros, not dollars, to buy Yen on behalf of the U.S.
Treasury, working through Goldman Sachs and Morgan Stanley. The unusual euro-funding mechanism pushed the euro down more than 4% against the Yen in a matter of days. But all of this was for basically nothing.
By August 11, the pair had drifted back to ¥159.28, erasing about half the intervention-driven rally. Traders are still paying for downside protection against another intervention. And another intervention could come.
Goldman Sachs estimated that Japan still has roughly $200 billion in cash and cash-equivalent reserves, out of $1 trillion in total dollar reserves, available for a couple more rounds of intervention at July's scale. Nvidia-level potential. 30M+ investors trust Moby to find it first. Economists point to two structural culprits that intervention doesn't touch.
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