Japan’s Contradictory Stance Leaves Yen at Risk of Further Slide
- MOF warns markets about weak yen even as BOJ keeps easy policy
- BOJ is only likely to tweak policy if yen drops to 150: survey
Sept. 15: Yen Rebounds on Intervention Signs
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Japan’s increasingly incongruous policy stance aimed at securing both stable growth and inflation is adding to the likelihood of further yen losses, even as officials warn of possible intervention.
Just this week, as Finance Minister Shunichi Suzuki was warning he would step into markets to shore up the currency if needed, the Bank of Japan was boosting bond purchases to keep yields low -- a move that widens the policy differentials with the rest of world and weakens the yen.