Yen Steady Near 157 After Suspected Intervention; Oil Slips

Yen Steady Near 157 After Suspected Intervention; Oil Slips on Demand Worries

The Japanese yen steadied around 157.22 per dollar on Tuesday, following a brief surge on Monday that pushed the currency to an intraday high of 155.69. The move came after Japanese Finance Minister Satsuki Katayama warned against speculative trading, keeping markets on alert for further intervention. Sources told Reuters that Tokyo intervened to support the yen last Thursday, marking the first such action since 2022. Source

Abbas Keshvani, Asia Macro Strategist at RBC Capital Markets, noted that authorities could step in again if dollar/yen tests the 160 level, which they have historically defended. In 2022, Tokyo "fired three volleys of intervention in a few weeks." However, Keshvani believes intervention will only act as a lid on USD/JPY, not a catalyst for sustained yen strength.

Meanwhile, crude oil prices slipped 1.3% to $105.03, retreating from gains in the previous session that were driven by heightened supply disruption worries. Geopolitical tensions remain in focus, but demand concerns are weighing on prices.

On the earnings front, investors are bracing for reports from major companies like Advanced Micro Devices and Pfizer. Data from S&P Global Market Intelligence shows that 83% of S&P 500 companies that have reported so far have beaten EPS estimates, and 78.2% have beaten revenue estimates. "With no signs of slowing down, AI-driven spending will likely continue to do the heavy lifting for S&P 500 earnings growth, led by the technology sector," said Jeff Buchbinder, chief equity strategist at LPL Financial.

The Australian dollar edged lower to $0.7163 ahead of the Reserve Bank of Australia's interest rate decision, where a rate hike is widely expected.

Key Takeaways

1. The yen remains under pressure near 157 per dollar, with intervention risks elevated after Tokyo's suspected action last week.
2. Crude oil fell 1.3% to $105.03, reversing Monday's gains, as demand concerns outweigh supply disruption fears.
3. U.S. earnings season continues to impress, with over 80% of companies beating estimates, led by AI-driven technology sector growth.