Japanese authorities are facing renewed pressure to combat a continued yen fall driven by market expectations that the Bank of Japan will keep interest rates ultra-low, even as other central banks tighten monetary policy to curb inflation. | Reuters
Yen-buying intervention is rare. Far more often the Ministry of Finance has sold yen to prevent its rise from hurting the export-reliant economy by making Japanese goods less competitive overseas.
Market players, however, see the first threshold at 145 yen to the dollar, where Japan last intervened. If the dollar breaks above that, 150 yen could be the next line in the sand, analysts say.The decision is highly political. When public anger over the weak yen and a subsequent rise in the cost of living is high, that puts pressure on the administration to respond. This was the case when Tokyo intervened last year.
The decision would not be easy. Intervention is costly and could easily fail, given that even a large burst of yen buying would pale next to the $7.5 trillion that change hands daily in the foreign exchange market.When Japan intervenes to stem yen rises, the Ministry of Finance issues short-term bills, raising yen it then sells to weaken the Japanese currency.
That means there are limits to how long Japan could keep defending the yen, unlike for yen-selling intervention – where Japan can essentially print yen by issuing bills.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Beer factory leak turns Japanese port redOfficials were left red-faced at a beer factory in Japan's Okinawa region on Tuesday, after a mishap turned a large body of water a sinister shade of scarlet. | ManilaBulletin READ:
Read more »
Japanese firms eye PHL investment deals–CCAP | Andrea E. San JuanTwo Japanese firms are exploring opportunities in the contact center sector in the Philippines, according to the Contact Center Association of the Philippines (CCAP). According to CCAP President Mickey Ocampo, one of the Japanese firms “has already invested here in the Philippines. They have several investments.” The CCAP chief said…
Read more »
‘More than words’: The Japanese men joining Ukraine’s fightMSOpinion ‘More than words’: The Japanese men joining Ukraine’s fight “Japan’s government, like those elsewhere, has warned its citizens against travel to Ukraine”
Read more »
Japan reinstates South Korea as preferred trading partner | Yoshiaki Nohara & Isabel Reynolds / BloombergJapan decided to restore South Korea to its list of preferred trading partners, the latest step toward bolstering relations that will help them strengthen cooperation with the US. The restored status will take effect on July 21, Japanese trade minister Yasutoshi Nishimura said Tuesday. The return to Japan’s so-called white…
Read more »
Philippines borrows $1.14 billion from World BankWashington-based multilateral lender World Bank and the Philippine government sign four loan agreements totaling $1.14 billion. The breakdown of the deals includes $750-M from the Philippines First Sustainable Recovery Development Policy Loan. Full story:
Read more »
Veterans Bank holds Stockholders’ Meeting and Board Election | BusinessMirrorMAKATI CITY -- Philippine Veterans Bank (PVB) held its 2023 Annual Stockholders’ Meeting (ASM) last June 16, 2023. Around 1,000 Filipino World War II veterans-stockholders, widows and their compulsory heirs were in attendance. The meeting was graced by the presence of none other than the Speaker of the House of…
Read more »