Bessent and the Fed help Japan reverse months of yen losses

4 hours ago

The U.S. and Japan coordinated to engineer a notable rebound in the yen, which had been in a yearslong decline.
The yen strengthened to 157.40 per dollar on Friday, its strongest since early May, after flirting with 1986 lows just two days earlier.
The sharp gains resulted from direct yen purchases, official calls to banks, and jawboning by U.S. Treasury Secretary Scott Bessent and Japanese Finance Minister Satsuki Katayama.
The yen's previous weakness had stoked inflation in Japan and rippled through global markets, alarming Tokyo as import costs rose.

Japanese retail currency traders (Mrs. Watanabe) significantly increased net short positions on the US dollar to 2.79 trillion yen in June 2026.
This shift reverses their traditional yen carry trade strategy, now betting on yen appreciation amid expectations of official intervention to support the yen.
The move reflects growing trader sophistication and responsiveness to policy signals, highlighting risks of rapid unwinds in yen-funded trades.

South Korean stocks dropped for a second consecutive session, losing about $2.18 trillion in market value.
The KOSPI index fell as much as 12.6% before closing down 6%, extending a near-11% rout from the previous day, putting the market on course for its steepest monthly drop on record.
The plunge was fueled by reduced interest in chipmakers, which had previously benefited from AI-driven growth.

Japan is creating its first centralized intelligence agency since World War II, seeking advice from Western allies like the U.S., Australia, and Germany on technology, staffing, and priorities.
Dozens of Russian spies have moved to Japan in recent years, using the country to buy weapon components for Russia and evade sanctions, with foreign officials warning Japan has been slow to respond.
The efforts to establish the agency and the spy threat were reported by The New York Times, highlighting Japan's need for improved intelligence capabilities.

Host club manager Hide Kurosaki was shocked by his credit-card processor's bankruptcy, fearing disruption to 40% of sales.
Zentoshin's sudden collapse affected bars, clubs, restaurants, and regional banks, forcing cash or QR code payments as alternatives.
The incident is a setback for Japan, which has been moving away from its cash-only reputation, though impact is limited.

Nintendo raised its base salary for employees by 10% three years ago, as confirmed by President Shuntaro Furukawa.
The company is investing in talent retention with salary increases and a new 121 billion yen R&D building.
Discussions on Nintendo's Switch pricing and comparisons with other consoles like Xbox and PlayStation occur in the text.

Japanese retail currency traders (Mrs. Watanabe) significantly increased net short positions on the US dollar to 2.79 trillion yen in June 2026.
This shift reverses their traditional yen carry trade strategy, now betting on yen appreciation amid expectations of official intervention to support the yen.
The move reflects growing trader sophistication and responsiveness to policy signals, highlighting risks of rapid unwinds in yen-funded trades.

South Korean stocks dropped for a second consecutive session, losing about $2.18 trillion in market value.
The KOSPI index fell as much as 12.6% before closing down 6%, extending a near-11% rout from the previous day, putting the market on course for its steepest monthly drop on record.
The plunge was fueled by reduced interest in chipmakers, which had previously benefited from AI-driven growth.

Japan is creating its first centralized intelligence agency since World War II, seeking advice from Western allies like the U.S., Australia, and Germany on technology, staffing, and priorities.
Dozens of Russian spies have moved to Japan in recent years, using the country to buy weapon components for Russia and evade sanctions, with foreign officials warning Japan has been slow to respond.
The efforts to establish the agency and the spy threat were reported by The New York Times, highlighting Japan's need for improved intelligence capabilities.

Host club manager Hide Kurosaki was shocked by his credit-card processor's bankruptcy, fearing disruption to 40% of sales.
Zentoshin's sudden collapse affected bars, clubs, restaurants, and regional banks, forcing cash or QR code payments as alternatives.
The incident is a setback for Japan, which has been moving away from its cash-only reputation, though impact is limited.

Nintendo raised its base salary for employees by 10% three years ago, as confirmed by President Shuntaro Furukawa.
The company is investing in talent retention with salary increases and a new 121 billion yen R&D building.
Discussions on Nintendo's Switch pricing and comparisons with other consoles like Xbox and PlayStation occur in the text.

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