Today the Bank of Japan (BoJ) kept his commitment to protect the performance of exporters. Yen exchange rate fell to 4.3% against the USD after the intervention to-3 throughout 2011.
June Azumi ordered intervention at 10:25 pm Tokyo time after seeing the USD / JPY 75.35 translucent record low. Now the question is how long the government would intervene in currency markets? The answer is to the Minister of Finance Azumi 'satisfied'?
The data prove that excessive yen appreciation has made economic recovery is hindered. Indicators of industrial output and export performance are both down on last month's forecast. The condition can be understood because the company assumed that the maximum rate is 81.15 years.
"The situation will not change until the exchange rate (USD / JPY) returned 80.00 upwards," said Junko Nishioka, chief economist of RBS Securities and a former central bank official. Factors that inhibit Azumi current debt crisis is the development of the situation in Europe. Government intervention may be ordered at any time, but all will be useless if the Europeans do not get better conditions. Given the yen is one of the favorite choices of investors at a time when the economy is not clear.
In an interview, Azumi said that "the intervention took place until the results are satisfactory I". Total cash used in government intervention today is greater than the action last August (4.51 trillion yen). Besides hoping to repair Europe, the government likely continue to enter the market when the yen rose to a new psychological level. Target of authority is quite clear, namely to boost competitiveness of domestic industries so that revenue quarter could be better run.
June Azumi ordered intervention at 10:25 pm Tokyo time after seeing the USD / JPY 75.35 translucent record low. Now the question is how long the government would intervene in currency markets? The answer is to the Minister of Finance Azumi 'satisfied'?
The data prove that excessive yen appreciation has made economic recovery is hindered. Indicators of industrial output and export performance are both down on last month's forecast. The condition can be understood because the company assumed that the maximum rate is 81.15 years.
"The situation will not change until the exchange rate (USD / JPY) returned 80.00 upwards," said Junko Nishioka, chief economist of RBS Securities and a former central bank official. Factors that inhibit Azumi current debt crisis is the development of the situation in Europe. Government intervention may be ordered at any time, but all will be useless if the Europeans do not get better conditions. Given the yen is one of the favorite choices of investors at a time when the economy is not clear.
In an interview, Azumi said that "the intervention took place until the results are satisfactory I". Total cash used in government intervention today is greater than the action last August (4.51 trillion yen). Besides hoping to repair Europe, the government likely continue to enter the market when the yen rose to a new psychological level. Target of authority is quite clear, namely to boost competitiveness of domestic industries so that revenue quarter could be better run.
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