Japan intervenes in currency market to weaken yen

I'm praying for a Greek default. Not because of any vested interest, I'm just looking forward to the ensuing entertainment.

Hold out for a Greek default to rachet up the yen even more............

It is back to 75.9 yen for 1 US$

"I want the dollar to go down to 73"

That would be disastrous for most people.

Mr Azumi, keep intervening. You are younger, you are different...intervene and win. Be courageous!

@mr_jgb

BOJ intervention can be very effective if it is daring like Swiss National Bank. When the whole world want your currency, it is an easy problem to solve. BOJ can always make a commitment to supply unlimited amount of Yen at say $/Yen at 85. Learn from the Swiss National Bank.

You got it. You know what the Bank of Japan has to do.... but do they have the guts to attempt it? So far, tey haven't. The speculators are mounting an attack on the Japanese economy and driving the Yen's value higher and always higher, the government of Japan, if it cares even a litlte about its economy, has to fight back just as hard. They have the printing press, they can create as many Yen as they want.

The problem with these interventions they make from time to time is that they are inherently limited. They outright announce of much money they are willing to print, and that's the problem. The market works on expectations, if people expect the intervention to be short because the Bank of Japan runs out of money, then the effects will be very short. If you announce an unlimited intervention however, then markets and speculators are going to take notice and the value will be strongly influenced.

This is exactly what Switzerland did. They announced a target and that they would do anything to reach it, and since the day they have announced their target, their currency has not appreciated above it.

Having an overvalued currency is no comfort when your plants close down one after the other, forcing hundreds of thousands, if not millions, out of work, because making stuff in your country has become uncompetitive.

@Juan Rodriguez

Blame the US and all their politicians who made their economy so weak. I truly hope Ron Paul wins the presidential elections this 2012, the dollar will be just like a toilet paper if the US does not elect this man.

No, it's not about the American dollar. The Yen is appreciating against all currencies, not just the American dollar. Having an overvalued currency is not a good thing either, despite what you insinuate. Money must not be a stock of value, it must be a mode of exchange. If currency is too valuable and that its value tends to increase, then that is 100% risk-free investment and it increases demand for currency, as opposed to demand in investments, products or services. This grinds an economy to an halt better than anything else.

Let's sum up: investing in companies is good for the economy. Buying products is good for the economy. Hiring people for their services is good for the economy. Stockpiling money under your mattress is BAD for the economy. A currency that appreciates encourages people to stockpile money under their mattresses and discourages investment or consumption. Hence, it is bad for the economy.

@zurcronium

Ron Paul will never become President. He is too weird. He is a Doctor who thinks uninsured people should be allowed to die, for example.

Well, I am in favor of allowing people to die in dignity, so if Ron Paul thought that, I would have no problem... The real problem is that he thinks that doctors should be allowed to let uninsured people die if they cannot afford the treatments that could save their lives.

Can someone explain to me why the yen being high is a bad thing? I'm not too familiar with the matter.

Makes profits go down for J-companies. Why is that? Well, Americans buy a bulk of the Japanese exports, cars, electronics, etc. When A Sony TV is sold, it hinges on exchange rates. If the USD/JPY rate is up to 107, it's cheaper for Americans to buy it, hence more sales. When the rate is 75, less can afford it..

Can someone explain to me why the yen being high is a bad thing? I'm not too familiar with the matter.

tokyokawasakiOCT. 31, 2011 - 10:55AM JST Peg it at 100 to the US dollar. I see no other option?

If they did this, i'd be a very happy man indeed :)

they need to go and prop up the US Dollar.

whiskeysour, me too, I want the dollar to go down to 73 and the Euro up to 173.

Mrs Watanabe is going to beat the professional hedge fund traders. Cheers!

MS GLOBAL went to bankraptcy this morning.

Please please let it go down to 73, PLEASEEEEEEEEEEE

"with every one yen rise wiping tens of billions of yen from the annual operating profit of giants such as Toyota"

So if the yen ever weakened to, say, 100 yen to the dollar, Toyota would be raking in hundreds of billions more yen in profits.

Yes, I remember paying back my students loans in California while working in Japan ASAP thanks to the awesome exchange rates! Do not waste your yen at izakayas and other worthless places like that if you really want to save money and do something positive with your hard earned savings. IMHO.

BOJ intervention can be very effective if it is daring like Swiss National Bank. When the whole world want your currency, it is an easy problem to solve. BOJ can always make a commitment to supply unlimited amount of Yen at say $/Yen at 85. Learn from the Swiss National Bank.

This time the intervention timing is perfect, as long Yen opent interests are near record high over the weekend.

If BOJ manages to push above 81, many hedge funds will have to sell their long Yen positions. Once in a long while, Mrs Watanabe is going to beat the professional hedge fund traders. Cheers!

Making paying back my student loan even easier! Thank you Japan!

For CrazyJoe - At that rate, I would be buying property in the U.S like no tomorrow!

Big deal! It will go back down to 76 yen again. The government has done this many times in the past.

Now back down to 78.15 http://www.xe.com/ucc/convert/?Amount=1&From=USD&To=JPY

I'm kind of ignorant on this, but can't Japan just spend shit loads buying stuff (raw materials, foreign land and business) to make the yen go down?

アメリ　フセイン

アイ　アム　ソリー

Yo Juan, before you start sucking on the Ron Paul teet, dig a little deeper and find out what he really thinks of his non-white cousins.

@ CrazyJoe I wasn't replying to you. I was commenting on the story and BOJ intervention. I know what you mean by denominate, i.e. rebasing the currency. It doesn't matter or offer much value it will also confuse things. How are you going to pay for things that cost 59 yen when you rebase and it becomes 0.59 yen?

Obama works for the banks, he is just another puppet like Bush was, why do you think the US economy is so messed up? Google Ron Paul, learn about the man before attacking him, the media wants to block him out just so they can keep the status quo, besides he follows the constitution to the letter, something that these previous presidents have decided to ignore, unnecessary wars, bail outs, inflation, did I mention wars?

it's already sliding back down...

Obviously you don't know what denomination means. Look it up!

Nooo! That's a bad idea and it won't last. The market expects the yen to be 0.0133... US dollars.

Denominate the yen and make 1 YEN equal to 1 US Dollar.

The Japanese government is using taxpayer money to subsidize Japanese corporate profits.

Wait, don't intervene yet! I haven't transferred my student loan fees yet!

burning money... swatch it go straight back

Japan needs to manipulate its currency. Come on now, I'm waiting for 1 dollar =115 yen so I can buy Ghibli blu-rays again.

A nation's currency exchange rate is important for the economic health of that country. Although Japan has intervened in the market, it is unlikely to be enough of an intervention to make a serious difference. Japan needs to take the following steps in order to prevent the strengthening of then yen and to help it weaken:

1) Daily interventions in the foreign exchange (FX) market. 2) Pass a law allowing any traders to only be able to hold 1,000 yen worth of trading position in yen, unless they are selling yen, which may be unlimited. 3) Declare that discussions are under way to peg the yen to the dollar at 120 yen to the dollar. 4) Hold false meetings in order to give the impression that this peg will be adopted, though it won't. 5) Start to prosecute speculators who drive up the value of the yen. This is a serious measure, but it is essentially treason for Japanese nationals to drive up the value oft he yen. A few show trials and examples will suffice.

I say keep the dollar low, it brings tourists in since it is now more affordable to visit the US and it prevents Americans from spending money overseas. A lot of my Euro friends are doing just that :)

afraid retailors may increase the prices of imported items by 10~30% any time soon :(

Amazing some people are getting excited over 79 Yen to the Dollar. That was the same rate people were complaining about in the summer. If it was at 134 yen to the dollar like when I came to Japan in 2002, that would be great. But as my boss but it, he was complaining about 134 because it was 282JPY=1USD in 1982...

The point is this is just a natural slide...Intervention looks great for the headlines but it is like taking a bottled water to fight a wild fire.

BOJ cannot match firepower of FX international market. Yen will strengthen back to 75 as it has before when BOJ intervenes. Today is just for show to keep Toyota off the governments back for a few weeks.

Ron Paul will never become President. He is too weird. He is a Doctor who thinks uninsured people should be allowed to die, for example.

Juan, it seems that ur out of the loop. Nations want their currency to be worthless. Ur hatred towards obama is blinding u to see that he has done something good. What do u think all the fuss is about here in japan?? Anyway, the rich just got richer with this temp move.

Hello, Japanese tourist. Come to California now. We need your tourist yen.

Peg the yen to the dollar? Stay ahead of the game, peg it to the Chinese yuan.

Don't worry travellers: it will be back around the 76/77 yen mark in a week or two, thats for sure and certain! These "interventions" never work, the market forces will correct it...

This is great news, 79! I will be there on tuesday, so it will definitely help me.

BOJ intervened. Yen/Dollar now at about 79.

Very good! See how tomorrow morning will be here in the Wall Street.

I doubt it will hold.

79.26 as of right now.

wait a week & it'll be back to 75 . just a temporary fix. not sure why they even waste their time .

Paul, I just check on Oanda, but still shows .75

BOJ intervened. Yen/Dollar now at about 79.

Blame the US and all their politicians who made their economy so weak. I truly hope Ron Paul wins the presidential elections this 2012, the dollar will be just like a toilet paper if the US does not elect this man.

Be aware that US QE3 option is still on table.

post-war highs as investors seek the safe-haven

Japan is NOT a "safe haven"

for

White Collar Criminals from the Finance Sector__

speculators

is a euphemism for finance cretins that have used lobbyist to buy politicians to rig the system so that they can profit or keep their ill-gotten gains in the case of a crisis.

there is no risk involved, so they are not actual "speculators"

Woohoo! Going to Hawaii in a month - gonna live like a king! I'll be flinging US monopoly money left right and centre at bellboys, taxi-drivers and bar staff...

Peg it at 100 to the US dollar. I see no other option?

Just checked and rate jumped to 77.8! Been waiting for my paycheck today to buy at 75! Zanen.

It just might be time for us to peg the yen to the dollar.