Moody's Analysis: It is too early to conclude that Japanese authorities will intervene again now

Golden Finance reports that on May 6th, over the past few days, the Japanese yen experienced multiple sharp fluctuations, once again sparking market speculation about Japanese authorities intervening in the currency market. However, Moody’s analyst Stefan Angrick stated that it is still too early to determine the cause. He pointed out that compared to last week, recent exchange rate fluctuations have not been as intense overall, “and regarding last week’s situation, we can reasonably believe that foreign exchange intervention was involved.” He mentioned that changes in market positioning could also have contributed to these fluctuations, but if the Japanese government did indeed intervene, the scale of their operations might be smaller and more targeted. Dispersing intervention actions over several days can allow Japanese authorities to describe these operations as part of a single effort, aimed at curbing disorderly trading. This explanation could be helpful to Japanese authorities because, in principle, large economies with floating exchange rate systems should not intervene in the foreign exchange market. (East News Agency)