After weaker US payrolls, the dollar fell versus major currencies and USD/JPY
dropped about 1%. That pullback may temper expectations of imminent
yen-supporting intervention, but the yen at the 161 level remains concerning.
Daniela Hathorn at Capital.com said intervention would require Japanese
authorities to sell dollars and other FX reserves; US Treasurers could be sold
but likely not enough to push yields substantially higher. She added past
interventions have not had lasting effects because fundamentals did not change
and exchange rates ultimately depend on interest-rate differentials and capital
flows.
