Exchange rate checks reported by the Bank of Japan

“Therefore, the Undersecretary of the Treasury for Monetary Policy… indicated that he would (take) the necessary measures, meaning to intervene. So I don’t think I would be surprised if the yen depreciates again (further), (over) the next two weeks, if the Treasury intervenes in the market, i.e. buys the yen and sells the dollar to hold FX reserves. ”

KOYA MIYAMAE, SENIOR ECONOMIST, SMBC NIKKO SECURITIES, Tokyo “Government officials said they were focused on the magnitude of currency volatility, not the level of the exchange rate, and the (recent) big move may have sparked that reaction. ” “Individual intervention can only affect the market in the short term. It is not that there is no effect, but that there is no synergy, and the effect will not last long. ”

Masafumi Yamamoto, Chief Currency Strategist, Mizuho Securities, Tokyo

” (If USD/JPY rises above

) Intervention may become more likely. It’s unlikely… the intervention will have the desired effect, so I think it’s best not to. The U.S. is expected to cut rates next year, so it will have to wait until then. If the U.S. cuts rates, the yen will strengthen even if the Bank of Japan does nothing. “

“Currently, the dollar is strengthening and the yen is weakening due to the huge interest rate differential between the US and Japan, so ( intervention) is difficult to work. That’s why I think it’s best to wait. ” ” If the dollar rises above 50 yen, the likelihood of intervention would rise to approximately 10% from% to% before instead of becoming 10%. ”

ROB CARNELL, Head of Research, ING Asia Pacific, Singapore: on the possibility of BOJ intervention, “Never say uh. They have been stepping up their rhetoric lately. But I am wary of the inevitability of their intervention. Japan is G, they have a hands-off policy. “ “It’s also hard…unless they stop buying JGBs, unless they raise the cash rate, it doesn’t seem credible that they go to G said the yen was too weak. Intervention could at best buy them a few hours of respite before the market does what it wants to do again. “

Chief Economist, Minami Zhongjian Research Institute, Nanbu, Tokyo:

“It is unclear whether the Treasury will actually intervene in currency markets . But by doing an interest rate check, it suggests a readiness to step in to rein in sharp swings in the yen. ”

“My feeling is that the Treasury will not intervene at this stage and stay on the verbal warning. The Fed’s rate-setting meeting is a week away. I don’t think the market believes the Treasury will intervene at current USD/JPY levels. “225