Sakakibara is at it again.
His remarks are reported in Japanese media.
- authorities don’t need to take action yet, as the yen’s current weakness won’t do too much harm to an economy yet to fully emerge from deflation
- But if the dollar rises above ¥130, “that could cause problems” ... Japan has the option of conducting dollar-selling, yen-buying intervention or hiking the Bank of Japan’s ultralow interest rates, he said.
- “It’s difficult to sell the dollar to arrest declines in the yen,” as there are limits to how long Japan can do so by tapping its foreign reserves, he said.
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Yesterday we had some soft jaw-boning out of Japan which seems to have done the trick, for now:
