From earlier: Japan’s Katayama: We are getting closer to taking decisive step in FX market Japan’s top currency diplomat issues final warning before action in FX market This time, they’re not beating around the bush and being very explicit about it.
From earlier: Japan’s Katayama: We are getting closer to taking decisive step in FX market Japan’s top currency diplomat issues final warning before action in FX market This time, they’re not beating around the bush and being very explicit about it. Essentially, they’re giving currency traders one final offramp to get out of the way before they step into the market.
It still counts as a form of verbal intervention and they hardly ever offer such comments even during times when they are about to intervene. So, why do this now? Well, to put things quite simply is that Tokyo officials are desperate.
The fact remains that almost every fundamental factor out there is working against the Japanese yen currency at the moment. The Takaichi trade is still running in the background and perhaps may even worsen if the government has to compile a supplementary budget to push out more energy subsidies. Adding to that is the BOJ facing up against cost-push inflation now in their efforts to raise interest rates.