Goldman Sachs said that Japan's largest foreign exchange intervention in 15 years triggered a drastic reduction in tactical yen arbitrage positions, which exceeded the initial volume of closed positions after the July 2024 intervention. However, strategist Karen Reichgott Fishman pointed out in the report that since the macro background's support for the yen was still not as strong as in the summer of 2024, the dollar has regained half of its initial decline against the yen. Despite the drastic reduction in speculative positions, “if conditions are right”, more positions may be closed; “if the macro and market conditions support the strengthening of the yen,” positions may even turn into net longs, as was the case in July to August 2024. The market currently expects the probability that the Bank of Japan will raise interest rates in September at about 75%, and the faster pace of austerity may allow the yen to “remain strong for a longer period of time without changes in the world economic growth environment.”

Goldman Sachs said that Japan's largest foreign exchange intervention in 15 years triggered a drastic reduction in tactical yen arbitrage positions, which exceeded the initial volume of closed positions after the July 2024 intervention. However, strategist Karen Reichgott Fishman pointed out in the report that since the macro background's support for the yen was still not as strong as in the summer of 2024, the dollar has regained half of its initial decline against the yen. Despite the drastic reduction in speculative positions, “if conditions are right”, more positions may be closed; “if the macro and market conditions support the strengthening of the yen,” positions may even turn into net longs, as was the case in July to August 2024. The market currently expects the probability that the Bank of Japan will raise interest rates in September at about 75%, and the faster pace of austerity may allow the yen to “remain strong for a longer period of time without changes in the world economic growth environment.”