00:00You
00:20The global markets were getting comfortable with a strong dollar.
00:23A quiet but powerful signal has started flashing from Washington.
00:28For the first time in more than two decades, the United States...
00:33They may be preparing to step directly into the currency markets.
00:37And the target is the dollar-yen pair.
00:40According to recent reports, the U.S. Federal Reserve acting...
00:45on behalf of the Treasury Department...
00:47is preparing for a possible foreign exchange...
00:50intervention.
00:51The plan is simple, but the implications are huge.
00:55Sell U.S. dollars and buy Japanese yen.
01:00If this happens, it would mark the first U.S.-led currency intervention since the year...
01:052000, when major economies stepped in to support the euro.
01:10So why are markets paying attention right now?
01:13Because the New York Fed has already started what are called rate checks...
01:18on the dollar-yen pair.
01:19These are informal calls to major banks asking...
01:23a simple question.
01:24Where is the market trading?
01:27Historically, these...
01:28checks are a warning shot...
01:30a way to signal intent without firing the first...
01:33bullets.
01:34The big problem here is the yen.
01:37The dollar has...
01:38been pushing toward...
01:39and in some moments...
01:40above...
01:41the 160 level against the yen.
01:43That level matters.
01:45Because every time we've seen it in the past...
01:48Japan has felt forced to intervene.
01:50The core reason?
01:51Interest rates.
01:53The Fed is still holding rates around 4.5% to 5.5%...
01:58while the Bank of Japan remains near zero.
02:01This gap has super changed.
02:03what's called the carry trade.
02:05Borrow cheap yen.
02:07Invest in high...
02:08yield dollar assets...
02:09and in the process...
02:11keep pressuring the yen lower.
02:13A weak yen...
02:15doesn't just hurt Japan...
02:17it pushes...
02:18up imported inflation...
02:19distorts global trade flows...
02:21and risks political...
02:23backlash from trading partners.
02:25That's why coordination matters.
02:28Japan has intervened alone before...
02:30spending trillions of yen...
02:32with only...
02:33temporary results.
02:34US involvement...
02:36changes the game.
02:38history shows coordinated action...
02:40hits harder...
02:41and lasts longer.
02:43If the US does step in...
02:45here's what markets are watching...
02:47selling...
02:48dollars...
02:49and buying yen...
02:50would immediately...
02:51weaken the dollar...
02:52against the yen...
02:53potentially...
02:53by three to five percent...
02:55in the short term...
02:56and that...
02:57has ripped...
02:58multiple effects.
02:59A softer dollar...
03:00tends to boost...
03:01gold and commodities...
03:02you...
03:03the US...
03:04in global equities...
03:05and emerging markets.
03:06We've already seen...
03:07gold...
03:08surged...
03:09to record levels...
03:10as these talks...
03:11have gained traction.
03:12Japanese stocks...
03:13could face...
03:14short-term pressure...
03:15a stronger yen...
03:16hurts exporters...
03:17but...
03:18globally...
03:19risk sentiment...
03:20could improve...
03:21politics...
03:22Trump...
03:23versus...
03:24Powell...
03:25this also plugs...
03:26directly...
03:27into Donald Trump's...
03:28long-running...
03:28war...
03:29with Fed Chair...
03:30Jerram Powell...
03:31Trump has always...
03:32favored...
03:33a weaker dollar...
03:33arguing...
03:34it makes...
03:35US trade...
03:36more competitive...
03:37and while...
03:38Forex...
03:38policy...
03:39comes from...
03:40the Treasury...
03:41the Fed...
03:42executes it...
03:43with Powell's...
03:43set to expire...
03:44in 2026...
03:45and tensions...
03:46already high...
03:47over Fed...
03:48independents...
03:48any market...
03:49volatility...
03:50from this move...
03:51could quickly...
03:52turn political...
03:53if assets...
03:54rally...
03:55Trump may...
03:56claim victory...
03:57if markets...
03:58whipsaw...
03:58expect...
03:59the Fed...
04:00to take the blame...
04:01for now...
04:02no dollars...
04:03sold...
04:04no yen...
04:05bought...
04:06yet...
04:07but the signal...
04:08is clear...
04:08the US...
04:09is watching...
04:10the yen...
04:11the market...
04:12is on notice...
04:13and if...
04:13this line...
04:14is crossed...
04:15we could be...
04:16about to see...
04:17a return...
04:18of currency...
04:18warfare...
04:19in the global...
04:20financial system...
04:23subscribe to...
04:24one India...
04:25and never miss...
04:26an update...
04:28download...
04:29the one India app...
04:30now...
04:33not...
04:34that's...
04:35it's easy to...
04:36be part of the economic...
04:37move up...
04:38but the quase...
04:39have been left...
04:40rather than...
04:41I've made it...
04:42so guard the condom...
04:44it's hard to go...
04:45to get people...
04:46your history...
04:48it's not easier...
04:51it'sammacly dopamine...
04:53into all your energy...
04:54and never miss...
04:55to earn success...
04:56it's hard to...
04:57It's hard to make my right...
04:58it's hard to clean...
04:59that's hard to consume...
05:00to positions its own eyes...
05:01what we need...
Comments