Economists at OCBC Bank discuss policymakers’ readiness to act on JPY’s weakness.
If USD/JPY trades volatile by another 2-3 JPY intra-day, then authorities could really act
If USD/JPY trades volatile by another 2-3 JPY intra-day, then authorities could really act. That said, such activities (jawboning, etc.) probably only serve to slow the pace of USD/JPY upticks especially if the uptrend remains intact.
A reversal in the trend would require market dynamics to change (i.e. USD to turn or yield differentials to narrow, etc.).
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