Japan May Need $500 Billion to Weaken Yen, Deutsche Bank Says
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The yen’s weakness may be short-lived as Japan would need as much as $500 billion to intervene in markets just to match its previous efforts to curb the currency’s strength, according to Deutsche Bank AG.
An intervention of that magnitude will add about 10 percent of gross domestic product to Japan’s record debt level, wrote Deutsche Bank analysts including Bilal Hafeez, its head of currency strategy, in an e-mailed note. The bank based its estimate on previous moves by the Bank of Japan and the size of the currency market.