Mitsubishi UFJ: Intervention can only suppress speculative yen depreciation

GOLDEN FINANCE reports that on June 22, Daisaku Ueno, a strategy analyst at Mitsubishi UFJ Morgan Stanley Securities, said that the Japanese government can only curb speculative yen weakness through foreign exchange market intervention. “As long as the positive and negative real policy interest rate differential between the US and Japan continues to exist, the ‘magic’ of foreign exchange intervention will be difficult to permanently suppress the yen selling pressure. This pressure is fundamentally driven by investment decisions and actual demand generated by the economic activities of Japanese companies and individuals, and it has structural characteristics,” he noted. Japan’s Finance Minister Yōzō Katayama said the government is prepared to take appropriate actions in the foreign exchange market if necessary. (Jin10)
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