Japanese gov't spent ¥6.35 tril to bolster yen in October

No big deal for Japan. It's the world's biggest creditor nation. It accumulates tons of US denominated assets through trade, so may as use them to help the economy.

The ministry said it conducted forex intervention operations between September 29 and October 27, without giving details of when or how often they had taken place.

Imagine if this money pit were directed to the service of the people of Japan.

It seems every other story is one about another J.Gov money pit going to Japan Inc. or LDP interests.

Around the time of Monday's announcement, one dollar bought 148 yen -- still dramatically weaker than February levels of around 115.

Go back even further and it's nearly doubled since the days of under ￥80 to the $1.

Now 6.35 trillion yen is available to be directed to the service of the people of Japan.

You have a much more optimistic view of the LDPs intentions than I.

Unfortunately one not based on past performance.

I don’t believe you that it is only simply exchanging and without any lost. If that was the case, by logic no intervention would be needed at all and also not that exchange. And of course there also wouldn’t be that talking about traders testing the resolve of the BoJ. If not the whole sum then at least the price gap is lost when selling dollars or buying yen. I guess, most of you, and me of course, would like to see that money in the own pockets instead of being thrown into nirvana or to the traders and speculators who already swim in money for long enough. It’s btw about 73,000 yen per head that’s been used for the two interventions in autumn. Give it to me instead to those grey zone quasi criminals.

Let us see how the yen does after the FOMC meeting this week. If I were a betting man, I would put money on DXY going back up when they announce the almost guaranteed 75 basis point rate hike.

Band-aid solution to a financial hemorrhage.

It's like using your finger to plug a hole in a dam. The US dollar exchange rate will hit 200 yen late next year, if not sooner. Great for tourism, but tourism has never fully helped a country's economy recover.

Without much knowledge n finance I think it was very stupid they were denying intervention!

I mean sometimes only intentions can swing the market and make buyers to exchange huge amounts of currency! I mean couldn't they 'bluff' and say they will so the market takes care of itself?

Yubaru: 04/2013 the Yen was buying $1.05 AUD for 100 Yen. At the same time $1.00 USD was buying 99 yen. I predict the Aussie dollar will go over par with the yen during the winter. Today it is .94 / 95 to a 100 yen. In February it will be $1.03 to 100 yen.

@gintonic

All that money could have been saved if only pigheaded Kuroda thought more about what he lets out of his mouth. All he needs to do is to hint at changing BOJ course...instead he just keeps saying he will keep easing for the next couple of years and the yen keeps falling.

Exactly. But he will never do because it would mean admitting he was wrong. This guy is way too pride and stubborn.

History will not be kind to him because he will be judged as the guy that made possible for the government to spend like a drunken sailor. The latest example is this crazy 30 trillion supplementary budget to fight the inflation created by Kuroda silly monetary policy.

What is the appropriate rate for yen ? One dollar for 100 yen ? One yen for 100 dollar ?

No let's leave it to the market to decide.

The market did that.

Then people cry why is it so cheap ?? Do something.

And we're back at square one.

Kuroda will retire at the end of the year.

His focus, until then, is entirely on doing everything possible to avoid making the tough decisions that need to be made(like raising interest rates) - and on leaving the steaming pile for his successor to deal with.

I guess we can spin this positively.

A decade back as someone noted, the yen was a strong currency, and although it seemed daft to me at the time, the MOF intervened by selling yen and buying dollars.

And now they have been selling dollars at about twice the rate they bought them for.

So, are these MOF people actually masterful long term currency speculators?

Will they be booking profits on these sales and paying tax on the profits made?

Alas, I don’t think they are so clever. (Probably this is a completely wrong interpretation of the forex reserves accounting.) Rather than embracing the strong yen back then, now they are trying to have us plebs enjoy the weakness of our yen savings, and blow away dollars buying yen that they could just as well have the BOJ not print in the first instance by not spending so much money they don’t have.

Complete waste of time and effort ... it's simply a reflection of the Asian/Japanese "Saving Face" attitude, regardless who ends up paying in the end.