Japan's top currency official warns of intervention, sees no limits

"I have no choice but to take appropriate action against excessive fluctuations driven by speculation," Kanda said.

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Mr Kanda needs to wonder why the economy is in such a dire state.

Looking outside Japan might also be enlightening.

Is it Japan against the world!

The winner won’t be Japan.

> The yen's falling trend stems from the wide interest rate gap between Japan and the United States.

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I thought that the currency speculators were the reason?

It seems that other central banks are trying to rein in inflation by raising interest rates.

Japan is the outlier.

The nail that sticks out….

The last time Japan stepped into the market, it spent 9.79 trillion yen between April and May to slow the yen's fall against the dollar. Had proved "effective" in curbing excess volatility.

So it will justify to pour more money for market intervention in the future?

Japan will keep intervention as policy, it is the only measure that can be imagined by the unimaginative.

I wouldn’t underestimate Japan. They could tank the dollar if they really wanted to.

Speculation? What about larger macroeconomic, fiscal and trading trends? There is a limit to the ability to intervene. That would be Japanese $US and other international currency holdings of which Japan has quite a bit, but it is not infinite.

"I have no choice but to take appropriate action against excessive fluctuations driven by speculation," Kanda said.

Japan, taking aggressive moves against the USA? What planet do you live on?

the problem here is: who has prior knowledge of the government intervention

""Japan is in "extremely close communication" with its counterparts, Kanda said, noting that the country has not faced criticism over its actions because they are "in line with international agreements.""

Explain This report by the Asahi Shimbun dated June 21st.

""WASHINGTON--The U.S. Treasury on Thursday said no major trading partner appeared to manipulate its currency last year, but it added Japan to a foreign exchange "monitoring list," alongside China, Vietnam, Taiwan, Malaysia, Singapore and Germany, which were on the previous list.""

I am no expert in this matter BUT, Got an idea!! why not peg the Yen to the $ USD like many other nations and we have nothing to worry about anymore??

why not peg the Yen to the $ USD like many other nations and we have nothing to worry about anymore??

why handicap Japan's currency so it cant be a reflection of its economy. there a reason why the US $ is high it matches the US economy, strong. Japan economy is walking back into it deflationary spiral. Stronger Yen means lower expatriated profits means downward pressure on wages etc etc

Does anybody think a strong Yen is going to get Japanese workers better wages LOL

I just got notified a dividend payment yielding 2.7% based on current share price (6% if I used original bid price). I am paying 1.8% interest on my leverage. That's a 33% uplift on money I don't even own. 2/3 of my portfolio is leveraged...

I think it's time the BoJ to consider raising rates, else disparity between rich poor will widen even more.

or is tge BoJ too afraid of upsetting households?

https://asia.nikkei.com/Economy/Japan-households-investments-drive-80-of-asset-growth

or is tge BoJ too afraid of upsetting households?

What happens to the thousands of zombie companies who are kept afloat by access to interest free debt? What happens to the workers at those companies?

kurisupisuToday  07:22 am JST

Japan will keep intervention as policy, it is the only measure that can be imagined by the unimaginative.

Well said.

A stern warning from Japan's top currency diplomat came after US FED rate cut probability getting stronger. Alas they dont want to be perceived as toothless tigers.

Saying that it is still words without solid actions.

I wouldn’t underestimate Japan. They could tank the dollar if they really wanted to.

Wishful thinking, this isn't the 1980's

All those dinosaurs seems they have no clue on why the Yen is keep collapsing.

It's the fricking Economy yo!!

When you have all your major companies beaten hard and mercyless by Chinese, Korean, American, Singaporean, Indonesian or Taiwanese ones, you can speculate the Market all you want by purchasing USD and stuff. This is just a very short temporary fix, not a permanent one.

And news flash for those politicians: The Yen collapsed not only in front of the USD, but also on ALL the other powerful currencies such as Euro, Pound, Chinese Yuan, etc, etc.

All those dinosaurs seems they have no clue on why the Yen is keep collapsing.

The BOJ are not stupid. They have found themselves in an impossible situation. They can keep rates at effectively zero, and pray that traders give up on the carry trade when the FED drops rates, or they can increase rates, squeezing already strained homeowners, and crushing small and medium sized businesses that require zero interest loans to remain even remotely competitive, leading to bankruptcies and job losses.

Traders make money both ways. Sad japan government aka people are taking the big hit on losses these interventions are creating. Even japan has limits. Expect now 180 by years end.

At year end, FBR have lowered interest rates lowering the value

of US dollar.

At that point the exchange rate

should be

around 143～141 yen to the dollar.

JPY movements are driven by short selling speculators...

BOJ just put a small spark and let the greed of the short sellers do the rest....

Sadly that shows how economies are vulnerable...

Praying that vulture speculators who bought at 162 with margin call hoping it will go up are now crying nonstop

The US economy is currently the wonder of the world (funny how Biden doesn't get any credit for that), but it won't last forever. Likely sooner than later, the FRB will lower rates and the dollar will fall - to where is anyone's guess.

I've been here long enough that I remember the yen at 80/$. It was timely as I was raising kids and earning much and could buy lotsa US goods which, 30 years later, I still use.

But in the immortal words of a stock broker when asked of his prognostication of the market, he said, "It will fluctuate."

Wonder of the world? IMF projection is 2.6% which is solid. We all know where the wealthy is accumulating. (Elon Musk burps)

speculation is "the biggest."

This is 100% wrong.

Speculation by definition is buying and selling , coupled together. Speculators have to close their positions to realize any profits or losses.

Therefore, speculation has no long term impact.

Fundamentals are what drives the currency pricing, and the fundamentals being bad is why they have put the yen in the tank.

Kanda has to tell such porkies though. It’s his job to try to explain away their attempts to mess with markets.