Posted on 09/25/2022 8:50:32 AM PDT by EBH
TOKYO -- The Japanese government and the Bank of Japan have intervened to buy the yen and sell dollars for the first time in about 24 years after the currency weakened on indications that the central bank would stick to its ultraloose monetary policy.
The intervention on Thursday was confirmed by Masato Kanda, Japan's vice finance minister for international affairs. It followed a slide in the yen after BOJ Gov. Haruhiko Kuroda made bearish remarks that indicated he had no intention to raise rates any time soon.
Finance Minister Shunichi Suzuki later said that the BOJ intervened to calm volatility in the market. He declined to elaborate if the move was made unilaterally or with the consent of other countries.
The yen, which had fallen to more than 145 to the dollar before the intervention, quickly appreciated to below 141 in less than an hour.
Earlier Kuroda said: "I can assure you that there will be no monetary tightening for the time being... There is no change whatsoever to our easy monetary policy."
Japan is now the last central bank with negative interest rates after Switzerland lifted rates earlier on Thursday. Overnight the U.S. Federal Reserve raised its benchmark rate 75 basis points to 3%-3.25%, the highest level in 14 years. New projections by Fed officials showed that most of them expect the policy rate to rise to 4%-4.5% by the end of the year.
So far this year the yen has depreciated 21% against the dollar as the policy gap has grown between the BOJ and the U.S. central bank.
(Excerpt) Read more at asia.nikkei.com ...
I read that the soap opera ‘As the World Turns” is getting renamed to ‘As the World Implodes’.
Get your money out of the banks and into hard assets. The central banking system is getting ready to go bye bye.
Forex. Hard assets. I use magnums.
Totally foolish and a waste of money.
I remember when the Japanese used to work hard to lower the value of the Yen relative to the US dollar so they could export more to the US.
The US dollar has risen because US interest rates keep going high from the Fed.
Japan should just enjoy their low interest rate, lower Yen and export a heck of a lot more.
They don't really import that much from America anyways.
I think the problem of a low yen for them is that oil is traded in dollars and Japan imports all of it’s oil.
I don’t know if there is enough infrastrucure for Russia to supply all of their oil.
Also, Japan does not have the best relationship with Russia. They’ve bee arguing about the Kiril Islands for 70 years among other things.
Yes, and continued to do business with Soviet Union/Russia throughout that period. And they don't need special infrastructure to import Russian oil. They can use the same terminals they've been using to import oil from other countries. May come down to pricing, where the Russians offer a better price/deal.
That's the problem. Fed actions are causing yields on the 10-year Japanese Treasury to surge past 0.25%. Japan wants it as close to zero as possible, in order to fight the real problem...monetary deflation.
The Fed is fighting the wrong problem. This won't end well.
Except for the tiny fact that the Japanese yen makes up 13.6% of the US Dollar Index.
Also, the little issue that the world is denominated in US dollars.
The Yen is not alone. The Euro the Yuan, as well as gold and bit-coin are all falling hard against the dollar. As interest rates in America go up, everything else will go down.
Frankly, I don’t think this is because of inflation. I think this is done by our fed in order to kill Russia and China. It makes indebted countries pay far more for their debt. It also sucks the money supply down to a much lower range. So other countries will stop buying Chinese goods. It is a blunt instrument that will hurt many people. But it will hit Russia and China hardest. Collapsing China is even more important than collapsing Russia.
Expect the interest rates to continue up for another year. They will go at least to 5% and stay there. This will be hard on lots of people. And trade will slow dramatically. Items in the stores will change. They are likely to become more Mexican, more US, and more from southern Asia.
For real this time? You made that claim over 18 months ago - that it was weeks away.
I was thinking more of infrastrucure on the Russian end. They have a pipe to China, but will that do for Japan as well. However, I have no doubt they'll do whatever gives them most for least.
Well apparently it was months away. 😆
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