Is Japan's involvement in the yen's devaluation a futile war?

Is Japan’s involvement in the yen’s devaluation a futile war?

For the first time in 23 years, the Japanese government and the Bank of Japan started an exchange rate intervention program on September 22. The “heirloom knife” was taken out to stop the yen’s value from falling. The exchange rate of the yen to the US dollar on the foreign exchange market quickly increased from the lower end of the range of 1 US dollar to 145 yen to about 140 yen. Back below the market’s anticipated “145 yen line of defense,” many people are raising concerns about how long the intervention effect will last. The scale of the intervention is trillions of yen, according to pertinent sources.

approximately 5:00 PM Japan Time (4:00 pm Beijing time). The yen exchange rate, which was about 145.70 yen, increased by more than 1 yen right away. When Bank of Japan President Haruhiko Kuroda gave a press conference, everyone anticipated that the yen would weaken to around 146 yen, but instead, the depreciation accelerated.

Speculative funds that have been selling the yen are the target of this counterattack, according to a Japanese bank official who expressed surprise at the intervention’s impact on the price, which has now been pushed back to about 140 yen.

market thought that the government and Bank of Japan had a 145 yen defense line, but the majority of opinions thoug

an’s monetary easing and the intervention of buying yen.” It seems contradictory to buy yen

as declined to intolerable levels, forcing the Japanese government to act alone without consulti

ntervention this time is quite unexpected.” Sakakihara, a former Japanese financial officer who used to buy and

and selling dollars and yen. The maximum amount of intervention that can be carried out becomes the amount of fo

wever, is about $370 billion per trading day, according to a Bank for International Settlements (BIS) survey conducted in April 2019. Despite the fact that this takes int

t “there is no sustainable effect” and that “for

t for a very long time. Speculative funds sell the yen on the ground

er hand, the Bank of Japan adopted a monetary policy in Japan that uses 0.25% of the long-term

s widening interest rate differentials and trade deficits, speculative funds wil

t intervened by purchasing yen and selling dollars in April and June. However, the yen’s depreciation trend

ustry has praised the intervention because the sudden changes in the exchange rate will make it challenging for businesses to create business plans. Foreign hedge funds, however, asserted that

s widening interest rate differentials and trade deficits, speculative funds wil

t intervened by purchasing yen and selling dollars in April and June. However, the yen’s depreciation trend

ustry has praised the intervention because the sudden changes in the exchange rate will make it challenging for businesses to create business plans. Foreign hedge funds, however, asserted that

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