Japan quiet on possible yen-buying market intervention

A whole single yen per dollar plunge, nice intervention! /s

A whole single yen per dollar plunge, nice intervention! /s

A nice “plunge” indeed, who comes up with these articles? 150-147 is a plunge ?!

The yen is pathetically weak it's a joke !

Weak yen is overall good for jp though .... not sure they would intervene.

The stealth intervention last night was bought up with many more attempts to break through the 150 and then 155 range to come. MOF and BOJ lack justification as it's pure yield differential fundamentals at play. Friday should be interesting with payroll # coming out. The irony is the more they intervene, the weaker the yen as they deplete their dollars reserves. Bunch of clowns at work here!

Currency manipulation is second nature to LDP schemers.

The MOF is not a very good currency manipulator if all it can achieve is a one yen drop but what do I know as I don’t hold Japanese yen?

@YankeeX exactly

150-147 is a plunge ?!

You clearly know nothing about forex

So the abenomics chickens have come home to roost. It was unbelievable how the Japanese electorate enabled the borrowing for so long, now they can’t borrow anymore we’re all screwed. They should have been making cuts and saving where possible and kept the cost of living as it was, pre abenomics the yen was strong and the cost of living was much lower(circa 2012).

now the birth rate is decreasing and everyone is looking at costs continuing to go up, while wages don’t for the majority of the working public-good job Japanese politicians..

The yen has been trending weaker as the Bank of Japan remains committed to ultralow rates

Well, I would say it is ore the fact that they are committed to financing the government with freshly “printed” money.

They have already given up playing God and let long term interest rates rise, albeit slowly.

The short term policy rate below zero doesn’t apply to much and is more of a gimmick. Japanese savers would balk at truly paying negative interest rates.

But he declined to say whether the yen's fluctuations last night can be labeled excessive.

If there was intervention, it would have been the act that caused the excessive fluctuations.

These Japanese central planners are in a tough spot, having to talk nonsense to paper over the ridiculous policy mix that is in place.

Intervention or a magical form of financial, currency market sorcery of a Gandalf inspired thou shall not pass swift currency stability?

How short lived?

So-called "stealth" interventions are seen as effective in keeping market participants jittery and wary about what authorities may do next.

??

The latest rise and thus intervention is mostly due to the expectation that higher inflation and thus higher interest rates in the US will around longer than expected.

The rate gap is more about conditions in the US than in Japan.

I'm pretty sure these 70 year old oyaji are as clueless about currency market interventions as a potato.

ChabbawangaToday  12:57 pm JST

150-147 is a plunge ?!

You clearly know nothing about forex

Nothing to do with Forex. If the price of milk goes from 150 to 147, the price does not plunge. Just calculate the change as a % and you can see for yourself.

It will not pressure the USD, But it will bear pressure on the AUD and the Euro. Twice this year when this has happen and each time the AUD drop sharply from 95 yen to 1 AUD to 84 yen to 1 AUD and again from 96 yen to 1 AUD to 86 yen to AUD. Check out the yearly currency charts. So watch the AUD fall and rise back to 97 98 yen to AUD over the next 4 months.

They are throwing good money after good money away. Raise the interest rates and that will resolve part of the problem with the weakness of the yen but until they do that nothing will change.

We all know by know what this game is all about, 150 is the magic number, Exporter are doing great, Importers are doing well too too as they are ripping off the general public in the name of inflation, and the government is waiting and hoping that employers will raise wages when workers unions demand increases next spring, in the mean time the rich is getting richer and the poor is laying flat on his face.

Yen has been depreciated for over a century. Anyone remember when Sen was used ("cents" to the yen)? In 1910, 1 yen was equivalent to 50¢ USD.

https://www.japanpowered.com/history/what-was-the-cost-of-things-in-japan-1900s

They seem determined to defend 150. 10y JGB yields have touched 0.80 today, which has kept things in check today. Its drifted below 149 on and off. On a day where 30y UST's rose to 5% - I think the message has got across for a while that intervention will ALWAYS be an option.

Love the comments about 'depleting' USD reserves, you realise how many UST's Japan owns and what they are earning on them? Who's to say they didn't rebuy on the dips today?

@桜川雪 that's over 100 years ago dude, utterly irrelevant.

They are throwing good money after good money away. Raise the interest rates and that will resolve part of the problem with the weakness of the yen but until they do that nothing will change.

Won't raising rates highlight all the zombie company's though?

Use your Yen saving s in Japan/

Mat

Today 06:22 pm JST

@桜川雪 that's over 100 years ago dude, utterly irrelevant

History is never irrelevant. Must know or unscrupulous people may try to dupe you again.

Raise the interest rates and that will resolve part of the problem with the weakness of the yen but until they do that nothing will change.

Raise interest rates while printing even more tens of trillions of yen?

If they want to tighten the money supply to boost the yen, they have to stop printing more trillions of yen, imo.

But I don’t think they will because the government will have a huge problem.

I think they keep printing, and even if they fiddle with the short term policy rate, the yen will continue its long term decline. It’s inflation for Japan, not a strong currency… it’s what the central planners have chosen.

@Larr Flint: And we keep telling you it’s not going to 200.

When it was 100-110, some would have said “it is not going to 150”. Some would have even said that Japan is special and can print money indefinitely. (They know who they are.)

It makes no sense to have the BoJ printing at full speed ahead, while the Ministry of Finance sells US dollars trying to use in the other direction.

If Japan keeps this up, it can certainly go another 50 yen down to 200. It used to be worth 80, before the decisions of Abenomics.

If they change tack, then yes 200 could be averted, perhaps. But they haven’t changed tack.

@fxgai

Some would have even said that Japan is special and can print money indefinitely.  

Is that what Japan is doing? While all its peers have been forced to tighten conditions to battle higher inflation levels, Japan is able to stay the course with ultra-low interest rates, while achieving a moderate recovery, record-high corporate profits and basically no unemployment.

The Fed, US govt and Americans are waiting eagerly for the day when they can have lower inflation and lower interest rates.

I guess IS Japan special and the "some" have been proven correct (yet again).

While all its peers have been forced to tighten conditions to battle higher inflation levels, Japan is able to stay the course with ultra-low interest rates

Japan has had above-target inflation for months now - something at least one person here warned would happen (“as if inflation would miraculously stop at precisely a 2% level” - if you search your memory you’ll recall people warning of that, and it’s precisely what has happened).

Even the government sees it as a problem now, and is trying to impose price controls through its failed big government approach (to everything), rather than taking the necessary measures for a return to price stability.

while achieving a moderate recovery,

Japan has been staggering along having sporadic bouts of “recovery” for 3 decades now…

record-high corporate profits

Inflation does that…

and basically no unemployment.

Unemployment is not a typical feature of countries suffering from inflation…

@fxgai

You don't know the difference between cost-push and demand-led inflation. Until you do, your wasting your time pushing your narrative.

well, well…

"Inflation is always and everywhere a monetary phenomenon".

You’d be the one wasting your time, until you pull your head out of the sands.