JPY: Currency manipulator? – Rabobank

By FXStreet Jane Foley, Research Analyst at Rabobank, suggests that the sharp appreciation in the value of the JPY following the BoJ’s steady policy decision on April 27 re-focused the market’s attention on whether there will be a reaction from the Japanese authorities.

Key Quotes

“Comments from Finance Minister Aso over the weekend that “a 5 yen move in two days is clearly a one-sided speculative move and is extremely concerning” highlight that the degree to which the yen is unsettling the Japanese authorities. However, action taken by the US government makes it more unlikely that the MoF will be able to respond.

Aso made it obvious that he views the yen’s recent move as a product of speculative flows. He warned that “so that these speculative moves don’t continue, we will watch foreign exchange market moves with a sense of vigilance, and will act of necessary”. That said, the fact that USD/JPY continues to sink lower early in today’s session suggests that his words lack credibility.

On Friday the US signed into law new provisions of the 2015 Trade Facilitation and Enforcement Act which single out China, Japan, Korea, Taiwan and Germany as potential currency manipulators.

These 5 countries are now being monitored by …read more

Source:: FX Street