Japan threatens currency intervention

pmbug

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Japan's finance minister said on Saturday he would take decisive action against excessive and speculative yen moves, Kyodo news agency reported, threatening to conduct currency intervention after the yen rose to a record high against the dollar.

Jun Azumi was also quoted by Kyodo as saying that the yen's appreciation was not so much a reflection of Japan's economic fundamentals, but reflected the relative economic conditions in Japan, Europe and the United States.
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More: http://www.reuters.com/article/2011/10/22/us-japan-economy-azumi-idUSTRE79L07L20111022

All central banks have a vested interest in keeping forex rates range bound. They are all going to continue playing the money printing game as volatility increases with extreme global sovereign debt and economic / banking problems.
 

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... the Nikkei just reported that the BOJ "will discuss additional monetary easing measures to help blunt the mighty yen's impact on the economy when its policy board convenes for a meeting Thursday." Specifically, the BOJ may (read) will, expand the existing 50 TRN yen asset-purchase program by 5 TRN yen, and also may consider the purchase of bonds of more than two-year maturity, thus expanding scope of program and converting it into Japan's own Operation Twist. ...
http://www.zerohedge.com/news/every...r-global-currency-devaluation-frenzy-kill-yen
 

DoChenRollingBearing

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I hope they do...

I hope that the B of J DOES weaken their Yen. Some of the bearings we buy are from a small Japanese manufacturer, which of course would be good as they would be a little cheaper.

Nonetheless, the worldwide phenomena of debasing the currencies will end in tears. Gold will help us as individuals get through this.

Silver, guns & ammo, food & water and medical supplies are all good too.
 

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A multi-trillion-yen jolt of currency intervention on a Monday morning is guaranteed to get traders’ attention, but doubts remain over Tokyo’s ability to keep the Japanese currency from strengthening again.

A massive round of yen selling by the Bank of Japan on behalf of the nation’s Ministry of Finance saw the currency fall sharply to a three-month low versus the U.S. dollar.

The greenback, which had hit a new post-World War II low in Asian action, jumped as high as ¥79.53 from around ¥75.77 ahead of the intervention. The dollar remained substantially higher versus the yen at ¥77.99, but was significantly off its immediate post-intervention high.

Analysts said the BOJ appeared to sell around ¥7 trillion ($90 billion) or more of yen, although estimates varied.

Japan, however, is unlikely to emulate the success enjoyed so far by Switzerland, which has aggressively sought to counter safe-haven demand for its franc by placing a floor on the euro/Swiss franc exchange rate at 1.20 francs, strategists said.
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More: http://www.marketwatch.com/story/yen-intervention-likely-to-pale-vs-swiss-efforts-2011-10-31
 
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