JPY 03 (Dec 16 - Dec 25)

[winston]

Japan repeats warning against excessively weak yen

Analysing not just recent yen declines but factors that are driving the moves, and repeated that Tokyo stood ready to respond to any excessive currency swings.

It's important for exchange rates to move stably reflecting fundamentals. Excessive volatility is undesirable.

A weak yen has become a source of headache for Japanese policymakers because it inflates the cost of importing fuel and raw material, thereby hurting retailers and households.

The central bank would not directly respond to currency moves in setting monetary policy. But he said the BOJ could respond if yen moves have a big impact on the economy and prices.

Source: Reuters

https://www.thestar.com.my/business/bus ... y-weak-yen

[behappyalways]

The exchange rate "rises in the west and falls in the east".
The depreciation of the yen is expected to drop to 160?!
Goodbye Taiwan dollar 33?
US inflation is higher than expected, and interest rate cuts may be delayed again and again?!

匯率"西升東降" 日圓貶值下看160?!台幣再見33? 美通膨高於預期 降息路恐一延再延?! ｜20240413｜@inewsplus

https://m.youtube.com/watch?v=VwNQcN5MzB8

[behappyalways]

Japan may have spent US$36 billion on Apr 29 intervention, BOJ data suggests
https://www.channelnewsasia.com/busines ... ts-4303141

[winston]

Japan considers tax breaks to stem yen's decline

Possibility of introducing measures to provide tax breaks for companies converting foreign profits into yen.

The tax holiday may be deployed as a policy tool to stem the yen's sharp declines, incentivizing firms to return overseas profits to Japan.

The measures, if supported broadly, may be included in the government's annual mid-year policy blueprint compiled in the summer as part of the government's efforts to prop up the Japanese currency.

The tax break would be applied for about 20 trillion yen (HK$990 billion) of "foreign direct investment earnings" from companies' overseas subsidiaries.

Source: Reuters

https://www.thestandard.com.hk/section- ... 's-decline

[behappyalways]

Yen Soars After Japan Intervenes To Prop It Up For Second Time In 3 Days
https://www.zerohedge.com/markets/yen-s ... e_vignette

[behappyalways]

To prevent global currency chaos, the Bank of Japan takes action!
What’s the difference between Japanese yen and Chinese yuan?

防全球貨幣大亂 日本央行出手！日圓、人民幣兩樣情？【#風向龍鳳配】

https://m.youtube.com/watch?v=8PxJwxdER0o

[winston]

Traders Expect BoJ to Have Used ~US$59B to Intervene in JPY FX Rate This Wk

2024/05/03

Reuters reported that USD/JPY recovered 5% from a 34-year low of 160.245 on Monday (29 Apr), and is expected to record the biggest one-week gain in more than a year.

Japan has not confirmed that it has intervened in the exchange market. However, traders estimated that the Bank of Japan (BoJ) had used nearly $59 billion (equivalent to about JPY9 trillion) this week to defend the exchange rate.

According to the report, although the Japanese government has US$1.3 trillion in currency reserves, it only has US$155 billion in USD deposits as liquid assets.

Japanese authorities last intervened in the exchange market in September-October 2022, when about US$60 billion was used.

Rob Carnell, head of Asia-Pacific research at ING, commented to Reuters that BoJ's intervention only suspended JPY's decline, but the currency's exchange rate will inevitably be tested by the market.

He added that selling JPY has become a dream trade for traders, who can be bearish on JPY's exchange rate, and close for arbitrage when USD/JPY rises and trigger BoJ interventions.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[behappyalways]

The yen rose sharply and fell sharply. It was shocked to hit 151 at the weekend and fell back to 153 today.

日圓狂升猛貶 週末驚見151 今再退回153｜方念華｜FOCUS全球新聞 20240506@tvbsfocus

https://m.youtube.com/watch?v=mHnEENt1T68

[behappyalways]

Yen's First Intervention Rally Owed Very Little to Short Squeeze
https://www.zerohedge.com/markets/yens- ... rt-squeeze

[winston]

JP Media: JP Govt Has Entered Mkt Twice to Interfere Exchange Mkt

Japanese government admitted that the authorities entered the market on 29 April and 2 May respectively to boost JPY's exchange rate, according to TV Tokyo.

On 29 April, USD/ JPY fell to 160, being a 34-year low, according to the report.

By the morning of 2 May, USD/ JPY rose sharply from its low.

The market speculated that the Japanese government had entered the market twice to buy JPY, with a scale of JPY8 trillion.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN