USD/JPY Hit a Fresh 17 Month Low - Rabobank
Jane Foley, Senior FX Strategist at Rabobank, suggests that the USD/JPY
hit a fresh 17 mth low prompting accusation from Chief Cabinet Secretary
Suga that the recent currency moves were one-sided and speculative and
the government would take steps as needed.
Key Quotes
“Although
there is probably truth in the perception that speculative pressure is
currently a key factor in the JPY’s gains, we remain sceptical about the
prospect of intervention from the Japanese authorities. This would go
against the grain of years of G7 communiques which make clear that
market forces should set FX rates.
Insofar as it could be seen as
a blatant act of currency war, we would expect the Japanese authorities
to draw heavy criticism if it were to intervene in the FX market. Bank
of Japan Governor Kuroda this morning has reiterated his mantra that
addition policy step would be taken if needed.”
(Market News Provided by FXstreet)
