19th Aug 2026 14:30
(Alliance News) - iForex Financial Trading Holdings Ltd on Wednesday warned trading income in July was hurt by a "substantial" US and Japan yen intervention.
The online and mobile trading platform for multi-asset contracts for difference provider said trading has been "considerably weaker than anticipated" as of late, amid a subdued August. "Generally low" market volatility kept a lid on trading income.
In addition, it said trading income for July was only USD720,000, sinking from USD3.1 million a year prior.
"The principal driver for this was the substantial and, in recent years, unprecedented, joint currency intervention in the Japanese yen by the Japanese Ministry of Finance and the US Treasury on 30 and 31 July 2026," iForex said.
The intervention was prompted by the yen sinking to a historic low against the greenback, which traded on the cusp of the JPY164 mark. The Japanese unit regained some poise following the intervention, ending last month around the JPY157.40 mark against the dollar. The buck then fell as low as the JPY155.22 mark earlier this month.
"The intervention followed the yen reaching a 40-year low against the US dollar and resulted in an extremely sharp appreciation of the Yen, which moved against the group's net client exposure. The board also notes that, as Japanese clients fund their accounts in yen, the current weakness of the yen also has the negative effect of reducing the USD value of trading income from Japanese clients," iForex said.
As a result, the company now expects adjusted earnings before interest, tax, depreciation and amortisation between USD500,000 and USD2.5 million for 2026. In July, it said it expected annual earnings of USD2.4 million.
Chief Executive Officer Itai Sadeh said: "We are disappointed to be issuing this update so soon after our H1 update, reflecting a combination of short-term subdued trading activity and unprecedented exchange rate movements in key currencies against the USD. Nevertheless, we remain confident in the medium and long-term outlook."
Shares in the company were untraded at 180.00 pence each in London on Wednesday afternoon, down 7.7% from its 195p initial public offering price. iForex floated on February 25.
By Eric Cunha, Alliance News news editor
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