Japan’s solo FX intervention won’t be that effective – ruling party official

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Reuters UK

TOKYO (Reuters) – Japan lacks effective means to combat the yen’s sharp falls, as intervening unilaterally in the currency market will likely have a limited impact in reversing its downtrend, Satsuki Katayama, head of a ruling party panel on financial affairs, said. “Solo currency intervention won’t be that effective” in stemming sharp yen falls, which are driven by the interest-rate gap between the United States and Japan, she told Reuters. Raising Japan’s ultra-low interest rates would also be difficult given the impact that could have on the country’s 550 trillion yen ($3.84 trillion) of ba…

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