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For Traders from Club iNSIDER: “Rate Checks” and the Yen: How to Trade During Coordinated Global Currency Intervention

Post Views: 177 On Sunday, the actions of the New York Fed and the Bank of Japan on Friday were discussed, which triggered the largest yen appreciation since Liberation Day and were perceived as a new variant of the “Plaza Accord” aimed at halting the dollar’s rise. On Friday, it was reported that the New York Fed and the Bank of Japan conducted verbal warnings, including rate checks, signaling potential actions without actual intervention—so-called central bank “jawboning.” Such direct involvement of the U.S. Treasury in currency markets is extremely rare: the last instances were in March 2011 following the earthquake in Japan and in September 2000 at the launch of the euro, in both cases with multilateral intervention coordinated with…

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