Updated

Updated · TradingView · Jun 23

BOJ Deputy Governor Himono Speaks in Parliament as Yen Drop Draws Fresh Verbal Intervention

Updated

Updated · TradingView · Jun 23

BOJ Deputy Governor Himono Speaks in Parliament as Yen Drop Draws Fresh Verbal Intervention

Q: With trillions spent and the yen still falling, are Japan's currency interventions futile?

Mostly yes—on their own, Japan’s interventions look more like a temporary brake than a lasting fix for the yen’s slide. The evidence is clear. Japan has spent trillions of yen, including about 5.48 trillion yen in the April 30 operation and roughly 11.7 trillion yen over a recent intervention window, yet the yen has repeatedly drifted back toward and above the 160-per-dollar area. Each intervention produced a sharp rebound, but the effect faded within days. The main reason is that intervention is fighting stronger fundamentals. The Bank of Japan’s policy rate, at 0.75%, remains far below U.S. rates of 3.50% to 3.75%, keeping the yen carry trade attractive. Investors can still borrow cheaply in yen and buy higher-yielding dollar assets. High oil prices add another structural drag because Japan is a major energy importer, so a weaker yen raises import costs and worsens pressure on the currency. That is why analysts describe the policy mix as inconsistent: the finance ministry buys yen while monetary settings still favor yen selling. Verbal warnings from Finance Minister Katayama and caution from currency officials may slow speculation, but they do not change the rate gap. That does not make intervention useless. It can smooth disorderly moves, deter one-way speculative attacks and buy time. But unless the BOJ tightens more decisively, U.S. rates fall, or Japan secures coordinated action with Washington, intervention alone is unlikely to reverse the broader trend.

1 articles · Updated · TradingView · Jun 23

Himono was set to appear in Japan’s parliament from 0000 GMT, putting Bank of Japan messaging in focus as markets watch for clues on policy and the currency.
Katayama, Japan’s finance minister, separately repeated that authorities stand ready to respond as needed, a familiar verbal intervention line aimed at slowing the yen’s latest slide.
The pairing of a BOJ parliamentary appearance and renewed finance ministry warnings underscores official concern over yen weakness, even without any new concrete action announced.

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TradingView3d ago

BOJ Deputy Governor Himono to Speak in Japanese Parliament

With trillions spent and the yen still falling, are Japan's currency interventions futile?

Is Japan's battle to save the yen forcing it to sacrifice its own economic recovery?

Is the yen's historic plunge a sign of Japan's fading economic power on the world stage?

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TradingView3d ago

BOJ Deputy Governor Himono to Speak in Japanese Parliament

BOJ Deputy Governor Himono Speaks in Parliament as Yen Drop Draws Fresh Verbal Intervention

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