The Japanese Ministry of Finance has remained inactive this month, not because it is allowing the yen to fall, but because it is waiting for the Fed to play its cards. Under a high-interest-rate environment, stubbornly intervening is simply not cost-effective.

CoinWorld news: Junichi Makino, an economist at Mitsui Sumitomo Nichiko Securities, said that the Japanese Ministry of Finance’s recent suspension of foreign exchange intervention for up to one month is likely a strategic decision rather than tacit approval of yen weakness. Makino believes that, given market expectations of rising U.S. interest rates, the effectiveness of any intervention would be weakened, and the Japanese Ministry of Finance may consider it a wiser approach to pause foreign exchange intervention. Data from the Japanese Ministry of Finance shows that between May 28 and June 26, the department did not carry out any operations to buy yen.