Analyst Justin Low analyzed the sudden fluctuations in the yen exchange rate on the 1st, stating, "It appears Japan has embarked on a second intervention." He explained, "The second intervention will be more effective," and "speculators who were caught will turn to a wait-and-see approach." The dollar-yen exchange rate once plunged by 130-150 pips, retreating to near the previous day's low of 155.55 before rebounding. Low stated, "As the Japanese Ministry of Finance has judged a second intervention necessary, they will try to push the exchange rate below that level at all costs," but also pointed out, "Although there are sufficient foreign exchange reserves, depleting them to send a message to the market is a waste." He added, "Currently, all fundamentals are unfavorable for the yen, and policy authorities are aware of this," and "It's a desperate situation with the US-Iran conflict ongoing and the Strait of Hormuz still closed."
