Any more BOJ intervention lowering the yen above 111 - 112 level will be seen as a "brutal currency move." This is AGAINST the G-7, G-10 and G-20 global currency regulation policy that Japan helped establish - Japan is prohibited from further weakening the yen. Cheers! Sam
Wednesday, March 10, 2004 Fukui: Sharp Forex Moves Make Fighting Deflation Harder TOKYO(Dow Jones)--Bank of Japan Governor Toshihiko Fukui said Wednesday that government efforts to curb the yen's strength through intervention were in line with BOJ policy, as sharp exchange rate moves threaten the central bank's fight against deflation. "At this important time when we are on the verge of escaping deflation, disorderly movements in financial markets, including the currency market, can be very damaging," Fukui told an Upper House budget committee. "It is in line with the direction of (BOJ) policy for the government to take appropriate steps in foreign exchange markets," he added. "There is no contradiction." I guess they haven't had a chance to open up ET yet today!
From Bloomberg: Yen May Rise "The only economy pumping out regular surprisingly good news is Japan,'' said Robert Rennie, currency strategist in Sydney at Westpac Banking Corp. "The market is being manipulated by Japan. It's driving the whole currency market.'' http://quote.bloomberg.com/apps/news?pid=10000101&sid=a0f1gE6X.Ork&refer=japan
"market manipulated" ? Oh no it's not possible ... conspiracy theory from the paranoid us financiers haha !