GBP/JPY Holds Near 212.00 as Yen Recovery Loses Momentum
The GBP/JPY pair is holding below its weekly highs against the Japanese yen, trading around 211.65 at the time of writing, following Wednesday’s rebound from the 210.00 low. The pair remains capped as recent yen strength has faded.
The Japanese yen lost momentum after comments from U.S. Treasury Secretary Scott Bessent, who dismissed speculation about any plan to intervene in markets to support yen stability, a rumor that had fueled a sharp yen rebound last week.
Less than 24 hours after President Donald Trump welcomed a weaker U.S. dollar, Bessent reiterated in a Bloomberg interview on Wednesday that the U.S. administration remains committed to a “strong dollar” policy. These remarks provided renewed support to the U.S. dollar and weighed on the yen.
The comments also offset the impact of the latest Bank of Japan (BoJ) monetary policy meeting minutes, which leaned toward a more hawkish stance. The minutes showed broad agreement that rising inflationary pressures, a weak yen, and stronger wage growth could justify further monetary tightening by the BoJ.
