InTouch Capital Markets senior FX analyst Sean Callow said the recent yen
depreciation has been notable for being unusually smooth and orderly. The
dollar's rise against the yen has been moderate, without the violent swings that
typically justify Japanese intervention. Callow said weaker oil prices should
have offered some support to the yen, but interest-rate dynamics are dominating:
strong US data have reinforced expectations for Fed hikes this year. Although
the Bank of Japan acted in June, a roughly 1% yield is not attractive for a
currency trading near a 40-year low versus the dollar.
