Japan threatens currency intervention

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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... 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. ...

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DoChenRollingBearing said:

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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