- Yen-buying intervention, BOJ rate hike will not have lasting effect in reversing weaker yen trend
- It is 'meaningless' for Tokyo to conduct yen-buying intervention
- Yen falls reflect economic fundamentals to some extent, moves not very fast
In essence, he is not exactly wrong as the BOJ has limited policy tools to work with and if they do try and fight the market, it may prove to be a losing battle. The best Japanese officials can hope for is a bit of verbal intervention so as to not allow the currency to drop too quickly. Otherwise, they are arguably comfortable with the current yen level, all things considered.
