Economy minister Kaieda says the economic situation is becoming increasingly sever in Japan and that an extra budget is needed this fiscal year.
For “normal” currencies, comments like these would weaken the domestic currency. The yen is far from a normal currency. The worse the economy gets, the stronger the currency gets as Japanese investors and business bring overseas assets home to shore up balance sheets.
Intervention is trying to offset that effect and has succeeded in the near-term.
USD/JPY trades at 85.78.
