Ex-Japan Finance Official Warns: Yen Intervention Could Resume Anytime, BOJ Should Accelerate Rate Hikes

Mitsuhiro Furusawa, former vice finance minister at Japan's Ministry of Finance, issued a stark warning: the yen's exchange rate is "clearly too weak," intervention could resume at any time, and coordinated action with the U.S. cannot be ruled out. The probability of a September rate hike has surged from 24% to 76%, with the terminal rate potentially rising to 1.75%. Goldman Sachs noted that once the Bank of Japan accelerates tightening, unwinding pressure on carry trades could spill over into global equity, bond, and currency markets.