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Japanese Intervention in Currency Marketshinclay
Summary:
The Japanese government came out today and intervened in the currency markets to weaken the Yen. As well, Japanese government officials pointed at "82" as being the line in the sand.
Bloomberg Review:
Japan Intervenes for First Time Since 2004 to Rein in Yen - Bloomberg
Take Away Point:
Japan is an export oriented country that heavily relies on having a weak currency to export substantially more than it imports. The Yen hit a new 15 year high today prior to the government intervention. The consensus is out on whether the Japanese government can truly weaken the Yen over the medium term and thereby increase exports to help its economic recovery.
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