Yen temporarily falls to 160 range, level not seen since Japan-U.S. coordinated intervention

Yen temporarily falls to 160 range, level not seen since Japan-U.S. coordinated intervention. Fed Chair Warsh said there is "work to do" to curb inflation, strengthening expectations of U.S. rate hikes. About half of the intervention effect has faded, likely affecting additional government intervention and the BOJ's September rate hike decision. 123

Government and BOJ conducted 15.4 trillion yen yen-buying intervention in July-August, record monthly high. The intervention amount from July 30 to August 26 was 15.3993 trillion yen, exceeding the 11.7349 trillion yen in April-May. This year's cumulative total reached 27.1342 trillion yen, also a record for a full year, and included the first Japan-U.S. coordinated intervention in 28 years. 456

Tokyo core CPI rises 1.8% in August, approaching BOJ's 2% target. The core index excluding fresh food accelerated for a third consecutive month, exceeding the market forecast of 1.7%. The index excluding fresh food and fuel, which the BOJ closely watches, came in at 2.0%, strengthening expectations of a rate hike at the September 17-18 meeting. 7

Finance Minister Katayama and BOJ Governor Ueda to attend G20, yen weakness talks in focus. They will attend the G20 Finance Ministers and Central Bank Governors meeting to be held next week in Asheville, U.S. The market is watching for bilateral talks with U.S. Treasury Secretary Bessent and discussions on correcting the yen's weakness. 8

Nikkei average rises 273 points to 66,405, buying in semiconductor and AI-related stocks. Following the previous day's gains in U.S. tech stocks and strong earnings from Nvidia, the Tokyo market rebounded. Ahead of the Fed Chair's speech, gains stalled in the latter half of the session. 910

Toyota global sales down 5.3%, sixth straight monthly decline due to weak China. Global sales in July were 912,683 vehicles, with China down 24% and the Middle East down about 45%. North America and Europe were solid thanks to strong hybrid vehicle sales, but intensifying competition in the Chinese market is taking a toll. 11

Sony Music becomes top shareholder of GungHo, acquiring 22.9% for 28.6 billion yen. After the acquisition, its voting rights stake will be 22.9%, making it the largest shareholder. It is drawing attention as a strengthening of capital ties in the game and entertainment field. 12

July job-to-applicant ratio 1.18, unemployment rate steady at 2.4%. The job-to-applicant ratio was unchanged from the previous month, and the unemployment rate remained at 2.4%, with resilient employment conditions continuing. It is being watched as a factor that could influence the BOJ's monetary policy decisions. 13