Ex deputy finance minister Hiroshi Watanabe speaking to Reuters 10 Nov
- Japan should not hesitate to intervene in currency markets if the yen spikes rapidly, even if U.S. President-elect Donald Trump opposes such a move
"If Japan hesitated to intervene out of deference (to Trump), it would not be able to act for the coming four years
If the yen spikes by 3 yen or more, Japan should not hesitate to intervene"
Eh what? We saw that move yesterday, and more, down to 101.20 but no real evidence of BOJ
- Japan-U.S. economic ties won't change much under Trump
- as long as the economy grows steadily sees no need for the central bank to ease already massive monetary stimulus further barring big shocks to financial markets
- BOJ should not be fixated on hitting its elusive 2% inflation target
"I don't think further easing would help much to spur flagging consumer prices"
Watanabe served as vice finance minister for international affairs for three years to 2007, and has a close network with policymakers in and outside of Japan.
Meanwhile USDJPY currently 105.36 in retreat after failing into 106.00.Expect demand/support into 105.00 initially.
Nikkei also off its highs as we head into the close but still up 6.7% at 17,336.76 more than making up yesterday's falls.
