When Does the Bank of Japan Intervene in The Yen

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    With the yen weakening to levels not seen since last year, and the last time the BOJ intervened to buy yen and sell dollars the risk of intervention i
    [See the full post at: When Does the Bank of Japan Intervene in The Yen]


    Verbal intervention from Japan’s finance minister Suzuki.

    Will continue to watch the FX market with a sense of urgency
    Will respond appropriately if there are excessive moves


    Japan’s top currency diplomat said recent #yen weakness rapid & excessive, which has to be dealt with appropriately.

    Bank of Japan’s June Summary of Opinions showed at least one policymaker open to reviewing yield curve control policy.


    BOJ deputy governor Himino sees early signs of demand-driven inflation

    Recent rises in Japan’s CPI are more more modest than in the US and Europe but stronger than previously expected
    While pass-through of import prices rise is broadening, new factors like labour shortages and strong domestic demand may also be playing a part
    Pass through of import price rise still dominant factor but BOJ must scrutinize contribution of newly emerging factors that are pushing up prices
    Not seeings signs of risk Japan would experience too-high inflation, must look at various factors
    Must be vigilant to signals coming out from markets, and impact of market moves on Japan’s economy

    “The pass-through of rising imported goods prices is broadening with a lag. But other factors may also be playing a part such as labour shortages, strong domestic demand, and changes in corporate price-setting behaviour,” Himino told Reuters in an interview conducted on Wednesday.

    “We believe the pass-through from rising imported goods prices is still a dominant factor, but need to scrutinise the contribution of newly emerging factors that are pushing up prices,” he said.

    “We need to carefully interpret the messages coming out from markets,” Himino said. “As for how we would respond with policy, it would be a comprehensive decision looking at the baseline scenario and risks surrounding the economy, prices and financial developments.”



    “Japan’s finance minister issued his second salvo of warnings to players in foreign-exchange markets in a day after the yen reached its lowest against the dollar since October, the month authorities last intervened to prop up the currency. ‘As I said at the morning press conference, I’m watching market trends with a high sense of urgency,’ Finance Minister Shunichi Suzuki said…”
    September 26 – Bloomberg (Erica Yokoyama and Emi Urabe)

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