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Japan’s government frustrated by strong JPY

By   || March 15, 2010 at 00:02 GMT
|| 2 comments || Add comment

When this government was elected last year the market was strongly of the belief that they would not intervene to contain movements in the JPY. The release of a draft proposal last week to increase the size of the intervention war-chest certainly belies that market belief. Articles such as this in the WSJ would suggest that the government is going to get serious about curtailing the rise of the Yen.

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Category: All, Asia
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2 Responses to “Japan’s government frustrated by strong JPY”

  1. hart on March 15th, 2010 00:08 GMT

    Buy more USD notes, bonds, treasuries. All same just different maturities for new readers. USD?

  2. Alex on March 15th, 2010 03:07 GMT

    Ironically, I think the best solution for driving the yen higher is for the BOJ to suddenly increase its interest rate 25 basis points. We would probably see a lot of yen funded carry trades remove from market as a result of that shock. (Ensuing a short squeeze) Then at the same time, intervene using half of “war chest” to drive up usd/jpy. Those two events compounded together could drive usd/jpy to 100, maybe higher in my opinion.

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